LIFO (Last In - First Out)

What is LIFO?

LIFO (Last In – First Out) refers to a process in which the goods are stored in a certain way. The goods that were stored last are removed first.

When prices rise, such as for gasoline or coal, the LIFO method is often used to keep goodwill low. In this method, similar assets are valued on a permanent or accrual basis.

Learn more:

• What is FIFO?
• What is HIFO?
• What is LOFO?