When managing inventory, what does FIFO stand for?

FIFO stands for "First In, First Out," which is a key inventory management and accounting method. This approach dictates that the oldest inventory items (the first ones that were added) are the first to be sold or used. This is particularly important in the food industry because it helps ensure that products are used while they are still fresh and within their expiration dates.

By implementing FIFO, a business can minimize waste and ensure that older stock is prioritized, which is crucial in maintaining product quality and safety. This practice also aids in accurate financial reporting since it can have a significant impact on the cost of goods sold and inventory valuation. Adopting FIFO helps Zaxby’s maintain its brand’s commitment to freshness and quality in its food offerings.

The other options do not reflect standard inventory management practices and would not adhere to the principles of effectively managing stock, especially in a perishable goods context.