FIFO
Business & Finance abbreviation · Accounting
| Stands for | First in, first out |
|---|---|
| Categories | Business & Finance |
FIFO stands for First in, first out, an accounting abbreviation also used in technology.
Inventory costing method that assumes the oldest units purchased or produced are sold first, so cost of goods sold reflects older costs and ending inventory reflects the most recent costs. In times of rising prices, FIFO produces higher reported profits than LIFO.
Example: Under FIFO, the bakery's ending flour inventory is valued at last month's higher prices.
Usage notes
FIFO is permitted under both US GAAP and IFRS and is the most widely used method internationally. It usually matches the physical flow of goods, especially perishables. In computing, FIFO describes a queue in which the first item added is the first removed.
Related abbreviations
More accounting abbreviations
- EBIT – Earnings before interest and taxes
- EBITDA – Earnings before interest, taxes, depreciation and amortization
- EBITDAR – Earnings before interest, taxes, depreciation, amortization and rent…
- EBT – Earnings before taxes
- EPS – Earnings per share
- FASB – Financial Accounting Standards Board
- FRS – Financial Reporting Standard
- FV – Fair value
- FY – Fiscal year
- FYE – Fiscal year-end
- G&A – General and administrative expenses
- GAAP – Generally accepted accounting principles