First In, First Out - FIFO

An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation.

For taxation purposes, FIFO assumes that the assets that are remaining in inventory are matched to the assets that are most recently purchased or produced. Because of this assumption, there are a number of tax minimization strategies associated with using the FIFO asset-management and valuation method.


Investment dictionary. . 2012.

Look at other dictionaries:

  • 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-out alarm — A first out alarm is an alarm that indicates in some manner that it was the first of a series. This is necessary in circumstances such as an automatic trip or shutdown of equipment, where many alarms will annunciate as a result of a shutdown. The …   Wikipedia

  • first out — last in, first out, = LIFO. (Cf. ↑LIFO) …   Useful english dictionary

  • last in, first out — ( LIFO) One of the methods for accounting for business inventory permitted by generally accepted accounting principals ( GAAP). American Banker Glossary ( LIFO) An accounting method that fixes the cost of goods sold to the most recent purchases.… …   Financial and business terms

  • Highest In - First Out — Highest In – First Out (engl. „höchstes herein – zuerst hinaus“), häufig abgekürzt mit HIFO, bezeichnet jegliche Verfahren der Speicherung, bei denen diejenigen Elemente, die den höchsten Wert haben, auch zuerst wieder entnommen werden. Das… …   Deutsch Wikipedia

  • Highest In – First Out — (engl. „höchstes herein – zuerst hinaus“), häufig abgekürzt mit HIFO, bezeichnet jegliche Verfahren der Speicherung, bei denen diejenigen Elemente, die den höchsten Wert haben, auch zuerst wieder entnommen werden. Das gegenteilige Prinzip wird… …   Deutsch Wikipedia

  • 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 — 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 — n. A method of inventory that assumes that the goods most recently bought are the first ones to be sold, and that goods still in inventory at the end of the year are the ones bought long ago. See also first in, first out abbrv. LIFO The Essential …   Law dictionary

  • last in first out — (LIFO) A method of selecting employees for redundancy on the basis of their length of service, with those who have the least service being chosen first. Practical Law Dictionary. Glossary of UK, US and international legal terms.… …   Law dictionary

  • last-in,first-out — last in, first out (lăstʹĭnʹ fûrstʹoutʹ) n. A method of inventory accounting in which the most recently acquired items are assumed to have been the first sold. In a period of rising prices, this method yields a lower ending inventory, a higher… …   Universalium

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