lifo Synonyms
No Synonyms and anytonyms found
lifo Meaning
lifo (n)
inventory accounting in which the most recently acquired items are assumed to be the first sold
lifo Sentence Examples
- LIFO (Last-In, First-Out) is an inventory valuation method that assumes the most recently purchased or manufactured items are sold first.
- LIFO can provide tax benefits when inventory prices are rising because it allows a company to recognize lower cost of goods sold during periods of inflation.
- LIFO is not permitted for use in financial reporting under International Financial Reporting Standards (IFRS).
- The LIFO method can result in a significant deferral of taxes in periods of rising prices.
- The LIFO reserve is the difference between the LIFO ending inventory value and the market value of the ending inventory.
- LIFO can be a complex accounting method to implement and maintain.
- LIFO is often used by companies that have a significant amount of inventory and whose inventory costs fluctuate widely.
- LIFO can lead to a distortion of the balance sheet because the ending inventory value may not represent the current market value.
- LIFO can be used in conjunction with a FIFO (First-In, First-Out) method for inventory costing.
- LIFO is a controversial inventory valuation method that has both advantages and disadvantages.
FAQs About the word lifo
inventory accounting in which the most recently acquired items are assumed to be the first sold
No synonyms found.
No antonyms found.
LIFO (Last-In, First-Out) is an inventory valuation method that assumes the most recently purchased or manufactured items are sold first.
LIFO can provide tax benefits when inventory prices are rising because it allows a company to recognize lower cost of goods sold during periods of inflation.
LIFO is not permitted for use in financial reporting under International Financial Reporting Standards (IFRS).
The LIFO method can result in a significant deferral of taxes in periods of rising prices.
