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The American Heritage Dictionary of Business Terms » first-in, first-out (FIFO)
first-in, first-out (FIFO)
first-in, first-out (FIFO) definition - business
first-in, first-out (FIFO)
An accounting procedure for identifying the order in which items are used or sold. With FIFO, the oldest remaining items are assumed to have been sold first. During a period of inflation, this procedure tends to keep costs low for accounting purposes; it results in higher reported profits and a greater tax liability, however. Compare last-in, first-out.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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