Definition

Noun: 1. First In, First Out (FIFO): An inventory accounting method where the oldest items in inventory (those acquired first) are assumed to be the first ones to be sold or used. This method matches older costs against current revenues.

Usage

FIFO is primarily used in business, finance, and inventory management contexts. - It is a standard term for describing an inventory valuation method. - It is often contrasted with other methods like LIFO (Last In, First Out).

Examples

• Noun:
  • The company uses the FIFO method for its cost of goods sold calculation, which results in a higher reported profit during periods of inflation.
  • Under FIFO, the cost of the ending inventory is based on the most recent purchases.

Advanced Usage

• "FIFO queue": In computer science, this refers to a data structure where the first element added is the first one to be removed, analogous to a line of people.
  • The print job scheduler operates on a FIFO queue principle.

Variants and Related Words

• LIFO (Last In, First Out): (noun) An opposing inventory accounting method where the most recently acquired items are assumed to be sold first.
• Inventory Accounting: (noun phrase) The broader field of accounting dealing with the valuation of inventory.

Synonyms

• First-come, first-served: (idiom) While not a technical accounting synonym, this common phrase captures the general principle of FIFO in everyday contexts.

Related Idioms/Phrases

• "First in, first out": This is the full phrase from which the acronym FIFO is derived. It is used both as a technical term and a general principle.
  • The warehouse operates on a simple first in, first out system to prevent spoilage.

Noun

1. inventory accounting in which the oldest items (those first acquired) are assumed to be the first sold