last-in, first-out. An accounting method that assumes that the most recent purchases are sold or used first, matching current costs against current revenues. — Abbr. LIFO. Cf. FIRST-IN, FIRST-OUT; NEXT-IN, FIRST-OUT. [Cases: Internal Revenue 3105. 1. C.J.S. Internal Revenue §§ 27–29, 31–33.]
next-in, first-out. A method of inventory valuation (but not a generally accepted accounting principle) whereby the cost of goods is based on their replacement cost rather than their actual cost. — Abbr. NIFO. Cf. FIRST-IN, FIRST-OUT ; LAST-IN, FIRST-OUT.
first-in, first-out. An accounting method that assumes that goods are sold in the order in which they were purchased — that is, the oldest items are sold first. — Abbr. FIFO. Cf. LAST-IN, FIRST-OUT; NEXT-IN, FIRST-OUT.
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