تالار تخصصی حسابداری

LIFO
 
Last in First Out is a method to value inventory. This method is based on the assumption that first those inventory items which were acquired at the latest are being sold and their cost is included into the Cost of Goods Sold.

Note that this is an assumption for the accounting purpose, so this does not mean that physically entity must sell first the items which were acquired at the latest. However for the purpose of Cost of Goods Sold calculation this assumption is used.