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 ...

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.

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 ...