A method of inventory accounting in which the cost of the latest units to enter the inventory is matched with the income from the first units sold.
An inventory accounting method that uses the price of the most recently purchased goods as the cost basis for cost of goods sold. During periods of inflation, LIFO produces higher costs, reduced profits, and reduced taxes paid on profits. LIFO contrasts with FIFO (first in, first out), another inventory accounting method that uses the prices of goods that were purchased first to calculate cost of goods sold.
(accounting, computing, business) Of or pertaining to any situation where the last to arrive is the first to go.
(accounting, computing, business) Of or pertaining to any situation where the last to arrive is the first to go, or a data structure where the most recently added item is the first to be retrieved.