Last In, First Out (LIFO) - Financial definition
Concise definition of the term Last In, First Out
Last In, First Out is a method of inventory costing in which the last items added to inventory are considered to be the first ones to be sold.
Comprehensive definition of the term Last In, First Out
This method allows business owners to value their inventory at the generally lower cost of the older inventory.
LIFO is typically used during times of high inflation.