An accounting method for valuing the cost of goods sold that uses the cost of the oldest item in inventory first.
("FIFO") For inventory accounting purpose s, the first 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 first unit record ed as still being in inventory. It does not matter which unit is physically drawn out of inventory. See also LIFO. [D03503] GAT
A method of inventory valuation whereby the goods first purchased or manufactured are considered the first ones sold. During periods of inflation, the FIFO method shows inflated profits compared to the last in, first out ( LIFO) method.
A data structure or hardware buffer where items are taken out in the order they were put in. UNIX pipes are the most common examples of FIFO s. FTP
An accounting method for determining the cost of inventories. Under this method, the first items purchased are treated as being the first items sold. Ending inventory is valued using the cost of later purchases, or the lower of cost or market.
Stock rotation best practice.
An inventory rotation system to sell older products before newer products.
Accounting method of valuing inventory issues by extracting the articles in the order they were received.
A cost flow assumption where the first (oldest) costs are assumed to flow out first. This means the latest (recent) costs remain on hand. To learn more, see Explanation of Inventory & Cost of Goods Sold. To Top
A method for calculating taxable gain or loss when mutual fund shares are sold. The FIFO method assumes that the first shares sold were the first shares purchased.
A stock rotation system that requires those items within a line which are first bought by a retailer to be sold first.
ACCOUNTING method of valuing INVENTORY under which the costs of the first goods acquired are the first costs charged to expense. Commonly known as FIFO.
Inventory costing method that states inventory at its most current cost while charging the cost of sales in the order the inventory is accumulated