First In, First Out

(redirected from First In, First Out Costing)

First In, First Out (FIFO)

An accounting method for valuing the cost of goods sold that uses the cost of the oldest item in inventory first. Ending inventory is therefore valued based on the most recently purchased items.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

first in, first out (FIFO)

see STOCK VALUATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
Full browser ?