FIFO
In accounting, FIFO means the cost-flow assumption that the oldest units leave inventory first, so cost of revenue carries the earliest costs and the shelf the latest. When prices rise, FIFO reports the lower cost of revenue and the higher inventory.
Also called First-in, first-out.
Authority: ASC 330-10-35-1B (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- first in
- first sold as a claim about the physical goods
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
2Cards
Family specAlso in Statements
Defined in Lexicon. This page is generated from that document, so the two can't disagree.