What Is First In First Out FIFO? Definition and Guide

What Is First In First Out FIFO? Definition and Guide

The inventory valuation method opposite to FIFO is LIFO, where the last item purchased or acquired is the first item out. In inflationary economies, this results in deflated net income costs and lower ending balances in inventory compared to FIFO. Instead of a company selling the first item in inventory, it sells the last. This […]