FIFO


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FIFO

First In, First Out

In accounting, a technique for valuing inventory by treating inventory acquired first as if it were sold first. The sale of inventory is recorded against the purchase price of the oldest inventory, even if the physical goods are not the same. In times of high inflation, the first-in, first out technique increases a business' inflation risk. For this reason, most American firms have used the last-in, first-out technique in their accounting since the 1970s.

FIFO

FIFO

see STOCK VALUATION.

First In, First Out (FIFO)

An accounting method for determining the cost of inventories. Under this method, the first items purchased are treated as being the first items sold. Ending inventory is valued using the cost of later purchases, or the lower of cost or market.
References in periodicals archive ?
Such LDC has been made possible because of improvements in transport and subsequently has contributed to the use of FIFO workers in the resource sector.
To shed some light on the impact of the roster on the social interactions of FIFO workers, respondents were asked to indicate whether they never or sometimes or often interacted with family and (or) friends based in the Townsville and Cairns regions, and sport and social clubs based in Townsville and Cairns, while on roster (at work) and while off roster (at home).
Operating Data (Unaudited) (Dollars in thousands) For the 13 Weeks Ended For the 52 Weeks Ended December December December December 27, 2008 29, 2007 27, 2008 29, 2007 LIFO EBITDA (1) $12,642 $19,794 $52,721 $48,469 LIFO Expense (Benefit) 1,592 (200) 3,992 1,600 FIFO EBITDA (1) $14,234 $19,594 $56,713 $50,069 FIFO EBITDA as a percentage of net sales 3.
When workers were scarce, part-time and job-share FIFO contracts were also offered to retain staff--such as those who might otherwise retire, and to attract new mothers back into the workplace, although these comprise only approximately 3 percent of the total workforce.
Pursuit of a high income is the most commonly cited reason for joining the FIFO workforce.
Most questions are addressed by the psychologist and cover topics for both the FIFO worker (for example, depression and mine site work) and the FIFO partner (being a FIFO mum), along with information for both partners about, for example, the breakdown of a FIFO relationship and fighting about sex.
Other studies include Dopuch and Pincus (1988), which examined the differences in accounting numbers and accounting ratios of users of LIFO and FIFO methods.
The second limitation of FIFO is a balance sheet inventory description based on historical costs, not the wholesale value at the balance sheet date.
FIFO produces a more current inventory valuation, but a less current cost of goods sold or cost of sales.
Rural electrics have achieved a FIFO cycle by retiring old, small allocations in years of large margins, the 1980s.
Under FIFO, the earlier $800,000 contribution had to be used up in determining the amount of capital-gain deduction allowed, before the second contribution could be considered.
More information about the HD FIFO is available at http://www.