Last In, First Out - LIFO


Last In, First Out - LIFO
An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.

LIFO assumes that an entity sells, uses or disposes of its newest inventory first. If an asset is sold for less than it is acquired for, then the difference is considered a capital loss. If an asset is sold for more than it is acquired for, the difference is considered a capital gain. Using the LIFO method to evaluate and manage inventory can be tax advantageous, but it may also increase tax liability.


Investment dictionary. . 2012.

Look at other dictionaries:

  • last in, first out — adj: being or relating to a method of valuing inventories by which items from the last lot received are assumed to be sold first and all requisitions are priced at the cost per item of the lot last stocked compare first in, first out Merriam… …   Law dictionary

  • last in, first out — adjective : being or relating to a method of valuing inventories by which items from the last lot received are assumed to be used or sold first and all requisitions are priced at the cost per item of the lot last stocked compare first in, first… …   Useful english dictionary

  • last in first out — adjective Of or pertaining to any situation where the last to arrive is the first to go …   Wiktionary

  • last in, first out — A method of recording inventory in assessing a stock of merchandise. Anno: 66 ALR2d 834 836. A method of inventory valuation for income tax purposes which assumes that the most recently purchased merchandise is the first sold. By treating current …   Ballentine's law dictionary

  • last in, first out — used for saying that the person who started to work for an employer most recently should be the first to leave if the number of workers is reduced …   English dictionary

  • last-in first-out — adjective Date: 1934 of, relating to, or being a method of inventory accounting that values stock on hand according to costs at the time of acquisition and not according to the cost of replacement …   New Collegiate Dictionary

  • Last-in-first-out — …   Википедия

  • ЛИФО (LAST-IN-FIRST-OUT)  — 1 Метод оценки стоимости запасов и калькуляции себестоимости. Он базируется на том предположении, что стоимость самых давних приобретений товаров остается включенной в стоимость наличных запасов, а стоимость последних закупок этих товаров… …   Словарь терминов по управленческому учету

  • first in, first out — adj: being or relating to a method of valuing inventories by which items in the lot first received are assumed to be issued or sold first and requisitions are priced at the cost per item of the oldest lot on hand compare last in, first out… …   Law dictionary

  • first-in, first-out — first′ in′, first′ out′ n. 1) bus a method of handling inventory costs at the price paid most recently, assuming items purchased first will be sold first Abbr.: FIFO Compare last in, first out 1) 2) cmp FIFO …   From formal English to slang

  • first-in, first-out — n. An accounting method that assumes goods are sold in the order purchased; see also last in, first out abbrv. FIFO The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary


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