Examples of FIFO and LIFO in Accounting. Two common ways for companies to account for inventory are first-in, first-out, or FIFO, and last-in, last-out, or LIFO. In FIFO, the first units that ...

LIFO Liquidation Example . ABC Company uses the LIFO method of inventory accounting for its domestic stores. It purchased 1 million units of a product annually for three years.

Does LIFO or FIFO Defer Tax Payments in Times of Rising Prices?. ... For example, if you receive an inventory shipment on day 15, day 10 and day five, ...