Learn about the Last In, First Out (LIFO) method, how it impacts financial reporting, and why it's used by U.S. companies to manage rising costs during inflation.

By using last in, first out (LIFO) when prices are rising, companies reduce their taxes and also better match revenues to their latest costs.

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 ...

The "Last In, First Out" inventory method has been hotly debated at the federal level. Congress has threatened to outlaw the method as the Internal Revenue Service introduces laws and requirements ...