LIFO (last-in, first-out)
Financial Dictionary — Inventory Accounting
Definition
is an inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so that the ending inventory consists of the first goods purchased.
Use cases, Example & Why it matters
Use cases
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Example
- Example: Teams reference **LIFO (last-in, first-out)** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.