1. A common method of valuing stocks which assumes that the stock received first is also consumed first. 2. (with regard to storage) The bookkeeping assumption, that goods which have entered stock first are delivered (sold), used and / or consumed first.
1. Stock Valuation - The method of valuing stocks which assumes that the oldest stock is consumed first and thus issues are valued at the oldest price. 2. Stock Rotation - The method whereby the goods which have been longest in stock are delivered (sold) and/or consumed first.
Characteristic of a queue in which the first item put into the queue becomes the first item to be taken out of it
This method of valuing inventory assumes that the order in which materials are received in the stores is also the order in which materials are issued from the stores. A major criticism against this method is that in period of rising prices, the charge to production is low. This tends to inflate reported profits, increase tax burden, and push up dividends -- as a consequence the firm is sapped financially. Popularly known as FIFO.
(1) A method used when calculating capital gains and losses from redemptions of mutual fund shares, or the sale of other corporate securities, in which the first shares purchased are assumed to be the first shares sold when calculating the amount of gain or loss. If no designation is made to the IRS by the investor, FIFO will be required. (2) A method of inventory valuation that assumes the oldest inventory (first-in) is sold first (first-out) (vs. LIFO).
method of inventory valuation that assumes that the goods received first are sold first.
An inventory valuation method, which allocates cost on the assumption that goods are consumed or sold in the order that they were acquired.
If the FIFO rule is applied by the tax law to the sale of a group of assets or in determining inventory, then it is assumed that the first acquired are the first sold. Applicability of the FIFO method can make a big difference in tax result, if items in the group were acquired or manufactured at different times or for different costs. (See also " Last-in, first-out (LIFO).")
A commonly used mechanism for the taxation purpose of redeemed mutual fund shares, it is an accounting method which assumes that the units purchased first are the units sold first.
(FIFO) (n.) Usually, a printer queue, which has the convention that the first file in is the first file to be printed.
Using the first-in, first-out (FIFO) method to stock and sell merchandise; the oldest is sold first to ensure quality and freshness. Rotation is often guided by code dating.
One of three methods to determine the cost basis of the mutual fund shares you sell. Under FIFO, the first shares purchased are considered the first shares sold. This is the IRS's default method. Because these tend to be the lowest-priced shares, this method usually results in a higher gain. A higher gain means higher taxes.
An inventory accounting method which assumes that the first goods purchased are the first sold. It is also commonly used to determine the cost basis of redeemed mutual fund shares.
A rule that applies to the sale of part of a group of similar items (such as inventory, shares of the same stock, etc.) that assumes the first ones acquired were the first ones sold. This is important if the items in the group were acquired or manufactured at different times or for different costs. The rule may be overridden by identifying the specific item sold, if possible. (See "Last-in, first-out (LIFO).")
A stock rotation procedure requiring that the oldest stock will be the first stock to be consumed.