Fifo (Noun)
Meaning
Inventory accounting in which the oldest items (those first acquired) are assumed to be the first sold.
Classification
Nouns denoting acts or actions.
Examples
- Using the First-In, First-Out method, or FIFO, the company's accountant assumed the oldest inventory items were sold first.
- The store's inventory manager relied on FIFO to track and manage the sale of perishable goods.
- The company adopted FIFO as its inventory accounting method to accurately value its inventory.
- FIFO is commonly used in inventory management to assume the most recently acquired items are the ones remaining in stock.
- The accountant applied the FIFO method to calculate the cost of goods sold and determine the profit on the sale.