Definition

Noun: 1. An inventory accounting method: "First in, first out" (FIFO) is a system for valuing inventory and calculating the cost of goods sold. It operates on the principle that the oldest stock (the items acquired first) are the ones that are sold or used first.

Usage

• This term is used primarily in business, accounting, and logistics contexts.
• It describes a specific model for managing the flow and financial valuation of inventory.
• Example:

Advanced Usage

• Conceptual Application: While primarily an accounting term, the FIFO principle can be applied conceptually to any queue or processing system where the first item to enter is the first to be serviced or removed.
  • Example: The ticket line operates on a first in, first out basis.

Variants and Related Words

• FIFO: The common acronym for "first in, first out."
• LIFO (Last In, First Out): The contrasting inventory accounting method where the most recently acquired items are considered sold first.

Synonyms

• Queue processing (in computing/data structures)
• First-come, first-served (in service contexts, though this is a broader behavioral principle rather than a formal accounting method)

Notes on Meaning

• The core meaning is fixed within inventory accounting. Its conceptual extension to other "queue" systems is an analogy derived from its primary definition. It does not typically function as a phrasal verb or idiom outside of this specific technical usage.

Noun

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