Last In, First Out

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Last in, first out (LIFO)

An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if prices are generally rising, LIFO will lead to lower accounting profitability.

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.

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.
References in periodicals archive ?
LIFO accounting adjustment reflects the impact on cost of goods sold in our consolidated statements of earnings resulting from LIFO accounting adjustments in each period.
The LIFO accounting method for inventories was first permitted in the Revenue Act of 1938 and was quickly extended to all taxpayers in the Internal Revenue Code of 1939.
The LIFO accounting charge for the segment is estimated to be US$13 to US$15 million this quarter, compared to US$6 million for the prior year.
There's good news for companies seeking practical and cost-effective ways to deal with the difficulties of Lifo accounting.
The "problem" occasioned by MSF's impermissible LIFO accounting existed only in those years in which a LIFO increment was created.
In addition, the cash tax deferral benefits of the LIFO accounting method largely have been eliminated by the year-over-year lower resin prices in 2009.
Adjusted earnings per share exclude charges related to repurchases of senior secured notes, a change in the fair value of contingent consideration and LIFO accounting adjustments.
124 F3d 1451 (1997), holding that, for dollar-value LIFO accounting purposes, inventory acquired at a deep discount should be treated as a separate item from that subsequently manufactured or purchased.
0 million in the first quarter of fiscal 2011, with the difference primarily due to the impact of LIFO accounting.
Celebrating our 25th year in business, SourceCorp Professional Services is the leading provider of R&D Tax Credit Studies, Energy Efficient Commercial Building Tax Deductions, Cost Segregation Studies, and LIFO Accounting in the U.
The adjusted earnings per share exclude the impact of purchase accounting charges and LIFO accounting adjustments.
In a period of rapid inflation like we are experiencing now, if you haven't yet made the switch to LIFO accounting, now is the time to do so.