NFA Compliance Rule 2-43b: What It is, How It Works
The cost flow assumption built into FIFO is that you’ll sell older goods first. When you experience the bullwhip effect, that cost flow assumption may get complicated, particularly if older merchandise becomes unsalable because of changes in consumer preferences. These distortions ripple through fulfillment, transportation, and manufacturing. Rule 2-43b was implemented by the U.S. forex…