The first in, first out (FIFO) method assumes that the first unit making its way into inventory–the oldest inventory–is sold first. For example, let's say that a bakery produces 200 loaves of ...

first out (FIFO) method assumes that the first unit making its way into inventory–the oldest inventory–is sold first. For example, let's say that a bakery produces 200 loaves of bread on ...

While LIFO is an acronym for last-in, first-out, FIFO stands for first-in, first-out. The LIFO method is based on the idea that the most recent products in your inventory will be sold first.