Last in first out: Inventory accounting system in which last purchases are the first to be used to determine ending inventory and the cost of goods sold

  • Oldest costs tend to remain in the inventory account
  • Results in lower net income in a period of rising prices when compared to the FIFO method
  • Inventory value is understated in period of rising prices
  • Acceptable method only under GAAP
K_6F_LIFO_Inventory

Write Off Apps

App for Entrepreneurs to Learn Tax Savings, Structure Right, & Grow Their Business with an Easy Game. A player chooses a character and plays each round against an opponent answering questions and learning on how to structure a business right, pay less tax, and more along the way. It is a fun and interactive way to learn all you need fast!

Free Cheat Sheet

Free Cheat Sheet

Subscribe for your free Cheat Sheet and to start your Know Your Numbers Journey

« Back to Glossary Index