An advantage of FIFO method of stock valuation is that

FIFO (First In First Out) matches how goods actually move through most businesses. Older items sell first before they spoil or become outdated. The cost flow matches the physical stock flow logically.

FIFO doesn’t control inflation well because old, cheaper costs are matched with current sales prices. It can be calculated anytime, not just year-end. “Progressive” doesn’t apply to inventory methods.

Key advantage: FIFO reflects reality. Stores sell older stock first, and the accounting method follows this pattern.