This entry contains information applicable to United States law only.

An abbreviation for last in, first out, a method used in inventory accounting to value the merchandise of a particular business.

LIFO assumes that the last goods purchased are the first sold and, as a result, those items that remain unsold in the inventory at the end of the year are assumed to be those which were purchased first.

See: fifo.

IN BRIEF: n. - Inventory accounting in which the most recently acquired items are assumed to be the first sold.