First-in-first-out meaning

fûrst'ĭn' fûrst'out'
A method of inventory accounting in which the costs of the first units to enter the inventory are assigned to the first units sold.
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An inventory accounting method in which the first goods that are purchased are counted as being sold. FIFO is calculated by taking the inventory at the beginning of the period, adding purchases during the accounting period, and then subtracting the ending inventory to arrive at the cost of goods sold. In times of inflation, FIFO produces a higher ending inventory, a lower cost of goods sold, and a higher gross profit, which means that income taxes may be higher.
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See FIFO.
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(accounting) A method of inventory accounting that values items withdrawn from inventory at the cost of the oldest item assumed to remain in inventory.
noun
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(operations) A policy of serving first what has arrived for service first.
noun
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