# FIFO

> FIFO — 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.

Source: https://lopifi.com/glossary/fifo
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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 known as

- First-in, first-out

## Words this system refuses for it

- first in
- first sold as a claim about the physical goods

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** cost-of-revenue, inventory, revenue