What accounting method do you use to value your inventory? The inventory valuation method you choose can affect amount of taxes you pay the government. Got your attention now? LIFO and FIFO are the ...

Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right ...

Since the price of products continually changes due to inflation and consumer demand, valuing current inventory can be challenging. FIFO, or first in, first out, is an accounting method used to ...

How LIFO and FIFO accounting methods impact a company's inventory outlook Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and ...

First In, First Out (FIFO) Definition: An accounting system used to value inventory for tax purposes. Under FIFO, inventory is valued at its most recent cost. FIFO was the traditional method used by ...

FIFO accounting leads to higher profits by using oldest inventory costs first. Using FIFO can increase tax liabilities due to higher reported profits. FIFO is optimal for managing perishable goods to ...

Many retailers have used the LIFO (last in, first out) accounting method to manage their inventory reporting. The methods assumes that the last unit to arrive in inventory (the most recent) is sold ...