Two common ways for companies to account for inventory are first-in/first-out, or FIFO, and last-in/last-out, or LIFO. In FIFO, the first units that arrive in the business are the first sold. In LIFO, ...

How LIFO and FIFO accounting methods impact a company's inventory outlook Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and ...

When it comes time for businesses to account for their inventory, businesses may use the following three primary accounting methodologies: FIFO stands for "first in, first out," where older inventory ...

Learn how LIFO liquidation impacts businesses, why companies use this method during inflation, and see a real-world example to understand its financial benefits.

Over the past two years manufacturers and resellers have struggled to maintain inventory levels due to global supply chain issues, and now are facing the highest inflation rates since 1981.

If inflation were nonexistent, then all inventory valuation methods would produce the same results. Inflation is a measure of the rate of price increases in an economy. When prices are stable, the ...