Last in first out

(LIFO).

1. Accounting.

A method of allocating inventory for valuation purposes which assumes that the inventory acquired or produced last is used first.

2.

A method of selecting staff to be made redundant, the most recently joined staff being the first to be selected for redundancy.

See also

• First in first out
• IAS 2
• Inventory
• Redundancy
• Stock
• Weighted average cost