It’s a principle or method used in various contexts, including accounting, inventory management, and computing.
LIFO refers to the Last In, First Out method of inventory valuation. With LIFO accounting, the most recently acquired inventory items are assumed to be the first ones sold or used. This means that the cost of goods sold (COGS) on the income statement reflects the cost of the most recently acquired inventory, which may result in different financial outcomes compared to other inventory valuation methods like FIFO (First In, First Out) or average cost.