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Introduction to FIFO and LIFO First in, First out (FIFO) and Last in, First out (LIFO) are the two primary inventory cost flow assumption methods used in accounting for managing and reporting a company’s inventory. FIFO assumes that the first units acquired or produced are sold or consumed first, whereas
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Overview of Highest in, First Out (HIFO) Accounting Method Highest in, first out (HIFO) is a unique inventory distribution and accounting method that sets itself apart from other methods like last in, first out (LIFO) and first in, first out (FIFO). In the HIFO method, the costliest inventory items are
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