Inventory Methods

• What is the LIFO Inventory Method?

  A method of valuing inventory that assumes that the latest goods purchased or produced are sold first.
• What is the FIFO Inventory Method?

  A method of valuing inventory that assumes that the first goods purchased or produced are sold first.
• What does FIFO stand for?

  First In, First Out
• What does LIFO stand for?

  Last In, First Out