Reviewing a FIFO and LIFO example will help you better understand these two concepts, explains accounting software maker FreshBooks. FIFO often is the more logical approach for inventory ...

What Is Last In, First Out (LIFO)? Last in, first out (LIFO) is a method used to account for business inventory that records the most recently produced items in a series as the ones that are sold ...

Also, LIFO is not realistic for many companies because they would not leave their older inventory sitting idle in stock while using the most recently acquired inventory. For example, a company ...