("LIFO") For inventory accounting purpose s, the last unit into the inventory is assumed to be the first unit to be drawn out. The inventory value assigned to any unit drawn out is the value of the last unit record ed as still being in inventory. It does not matter which unit is physically drawn out of inventory. See also FIFO. [D03520] GAT
A queuing technique in which the next item or person to be handled or retrieved is the item most recently placed in the queue. This works well in warehouses to ensure the most current stock is shipped first. However, it is not usually effective for handling queued callers at the Service Desk/Help Desk or Customer Support Centre. See first in first out.
Inventory costing method whereby inventory is stated at its earliest cost while charging cost of sales at its latest cost
One of the methods for accounting for business inventory permitted by generally accepted accounting principals (GAAP).
Abbreviated LIFO (pronounced “lie-foeâ€). A method of processing a queue in which items are removed in inverse order relative to the order in which they were added – that is, the last in is the first out. Such an order is typical of data in a stack data structure.
The most recently acquired product is the first sold.
An inventory pricing method that assumes the last item purchased is the first item sold. If the cost of merchandise is going up, the higher-cost, newer purchases are charged against sales and produce a lower net profit. The older, less expensive items are deemed to be on hand at the end of the year and create a lower inventory valuation. See also first in, first out (FIFO).
A method of queue management where the last item in is the first item out, much like a stack of papers. See also stack.
A method of inventory valuation whereby the goods most recently purchased or manufactured are considered the first ones sold. In periods of rising prices, the LIFO method shows a lower profit than the first in, first out ( FIFO) method.
An accounting method for valuing inventories for tax purposes. Under this method, the last items purchased are treated as being the first items sold. Ending inventory is valued using the cost of the items with the earlier purchase dates.
An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if prices are generally rising, LIFO will lead to lower accounting profitability. Source
A cost flow assumption where the last (recent) costs are assumed to flow out of the asset account first. This means the first (oldest) costs remain on hand. To learn more, see Explanation of Inventory & Cost of Goods Sold. To Top
Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period.
(Accounting based) A method of inventory accounting which presumes that the goods most recently acquired are sold before goods acquired earlier (opposite of FIFO – First In, First Out).
A system where the most recently purchased goods are sold first.
ACCOUNTING method of valuing inventory under which the costs of the last goods acquired are the first costs charged to expense. Commonly known as LIFO.
A method of inventory valuation for accounting purposes. The accounting assumption is that the most recently received (last in) is the first to be used or sold (first out) for costing purposes, but there is no necessary relationship with the actual physical movement of specific items. See: average cost systems.
