[Verse 1] When goods arrive at company doors Three methods track what inventory stores First In First Out means FIFO's the game Oldest items sold first, that's the name Like groceries on shelves, rotate the stock Fresh milk behind, old milk up front to clock [Chorus] FIFO, LIFO, Weighted Average too Three ways to value what's in front of you First out, last out, average the cost Choose the wrong method, profits get tossed FIFO, LIFO, Weighted Average way Impact your statements every single day [Verse 2] Last In First Out, that's LIFO's call Newest inventory gets sold first of all Like stacking plates upon a kitchen shelf Top ones go first, that's how you help yourself Rising prices make FIFO show more gain While LIFO cuts the taxes, eases pain [Chorus] FIFO, LIFO, Weighted Average too Three ways to value what's in front of you First out, last out, average the cost Choose the wrong method, profits get tossed FIFO, LIFO, Weighted Average way Impact your statements every single day [Bridge] Weighted Average smooths the bumps and dips Takes all costs and calculates the trips Divide total value by units you own Even pricing, seeds you've sown IFRS bans LIFO around the globe US GAAP lets companies disrobe [Verse 3] When prices climb, FIFO boosts your sales Older cheaper costs tell profitable tales LIFO matches current costs with revenue streams Conservative approach for accounting teams Weighted Average sits between the two Steady numbers, nothing extreme to view [Chorus] FIFO, LIFO, Weighted Average too Three ways to value what's in front of you First out, last out, average the cost Choose the wrong method, profits get tossed FIFO, LIFO, Weighted Average way Impact your statements every single day [Outro] Balance sheets and income statements changed By inventory methods rearranged Choose your weapon, know the consequence Three little letters make the difference
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