National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

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Using the FIFO inventory method, which supply will be the last to be utilized?

  1. Supply A

  2. Supply B

  3. Supply C

  4. Supply D

The correct answer is: Supply A

Using the FIFO (First In, First Out) inventory method, the supplies that were received first are the ones that are used first. This means that the inventory items stocked later will remain in inventory longer, making them the last to be utilized. In the context of the options provided, Supply A, as indicated, would be the earliest supply added to the inventory. Therefore, it will generally be the last to be utilized under the FIFO method, since newer supplies (Supply B, Supply C, and Supply D) are used first as they were received later. This approach ensures that the oldest inventory is depleted first, which is especially important for perishable items or items with expiration dates to minimize waste.