Super Finance Glossary
Over 10,000 financial glossary terms...
Last In, First Out (LIFO)
Last In, First Out (LIFO)
Definition: An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if prices are generally rising, LIFO will lead to lower accounting profitability.
Definition: An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if prices are generally rising, LIFO will lead to lower accounting profitability.