Concept:FIFO assumes that the earliest stock received is the first to be issued or sold.Explanation:Under FIFO, goods are issued in the exact order in which they were purchased.This means the cost flow follows the real physical movement of stock, making valuation realistic.It also helps reduce deterioration or obsolescence because older stock is used first.Therefore, the main advantage is that the cost flow matches the actual flow of stock.Answer:B. its flow of cost is in sequence with the flow of stock