LIFO

Definition

Last In, First Out — an inventory method assuming newest items are sold first.

Visual Reference

Example

Accountants apply LIFO when preparing financial statements and audits.

In Practice

Also known as: Last In First Out. Closely related to FIFO, Inventory. Contrasts with FIFO.

Word Usage

Inventory accounting; Falling prices; Tax optimization

Use Case

Applied in Accounting contexts: Inventory accounting; Falling prices