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LIFO

   Also found in: Dictionary/thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
LIFO

Last In, First Out
In accounting, a technique for valuing inventory by treating inventory acquired most recently as if it were sold first. The sale of inventory is recorded against the purchase price of the most recently acquired inventory, even if the physical goods are not the same. In times of high inflation, the last-in, first out technique reduces a business' inflation risk. It also may reduce one's tax liability. For these reasons, most American firms have used this technique in their accounting since the 1970s.

LIFO

Last In, First Out (LIFO)
An accounting method for valuing inventories for tax purposes. Under this method, the last items purchased are treated as being the first items sold. Ending inventory is valued using the cost of the items with the earlier purchase dates.


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Our invited speaker had my attention, and got even more of it as he summed up why the FIFO to LIFO change was so impactful: "If you don't know the truth, your perception is all you have to go on.
The oil and gas industry is a major LIFO beneficiary, but attention focused this week on distillers of bourbon -- which is legally required to age at least two years -- because of a high-profile clash on the provision.
If there are a number of employees with the same number of points, the employer may then use LIFO to decide which of them will be made redundant Q.
 
 
 
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