What is LIFO?
submitted by Rathnanigans

sure_did

LIFO means last in, first out. It's an inventory valuation method. In this case, the most recently acquired or produced items are considered to be sold or used first.

Using LIFO, the cost of the latest inventory purchases is matched against current revenues. This might lower your taxable income during inflation times because higher-cost inventory is sold first. Using LIFO impacts both the cost of goods sold and ending inventory valuation. It usually means a lower ending inventory value than when you use FIFO, which is first in first out.

JoeNeverGivesUp

LIFO stands for Last-In First-Out. It's a way companies keep track of their inventory. Basically, they assume that the newest inventory they buy gets sold first, even if that's not really how it happens. It changes how much profit they show and how much tax they pay.