last-in-first-out cost

= LIFO cost
A method of valuing units of raw material or finished goods issued from stock by using the latest unit value for pricing the issues until all the quantity of stock received at that price is used up. The next earliest price is then used for pricing the issues, and so on. Because the issues are based on a LIFO cost, the valuation of closing stocks is described as being on the same LIFO basis. The method may also be used in process costing to value the work in process at the end of an accounting period. This method of costing is not normally acceptable for stock valuation in the UK.

Accounting dictionary. 2014.

Look at other dictionaries:

  • last-in-first-out cost — LIFO cost A method of valuing units of raw material or finished goods issued from stock by using the latest unit value for pricing the issues until all the quantity of stock received at that price is used up. The next earliest price is then used… …   Big dictionary of business and management

  • first-in-first-out cost — FIFO cost A method of valuing units of raw material or finished goods issued from stock based on using the earliest unit value for pricing the issues until all the stock received at that price has been used up. The next latest price is then used… …   Accounting dictionary

  • first-in-first-out cost — FIFO cost A method of valuing units of raw material or finished goods issued from stock based on using the earliest unit value for pricing the issues until all the stock received at that price has been used up. The next latest price is then used… …   Big dictionary of business and management

  • last in, first out — ( LIFO) One of the methods for accounting for business inventory permitted by generally accepted accounting principals ( GAAP). American Banker Glossary ( LIFO) An accounting method that fixes the cost of goods sold to the most recent purchases.… …   Financial and business terms

  • last in, first out — adj: being or relating to a method of valuing inventories by which items from the last lot received are assumed to be sold first and all requisitions are priced at the cost per item of the lot last stocked compare first in, first out Merriam… …   Law dictionary

  • last-in,first-out — last in, first out (lăstʹĭnʹ fûrstʹoutʹ) n. A method of inventory accounting in which the most recently acquired items are assumed to have been the first sold. In a period of rising prices, this method yields a lower ending inventory, a higher… …   Universalium

  • last in, first out — adjective : being or relating to a method of valuing inventories by which items from the last lot received are assumed to be used or sold first and all requisitions are priced at the cost per item of the lot last stocked compare first in, first… …   Useful english dictionary

  • last-in first-out — LIFO An inventory valuation method that assumes inventory is consumed (or sold) in the reverse order in which it is purchased (or manufactured). LIFO methodology, which allocates the most recent inventory costs to *cost of sales, is not… …   Auditor's dictionary

  • last in, first out — (LIFO)  A method of assigning cost to the ending inventory which assumes that the cost of the remaining units consists of the costs of the earliest units purchased …   American business jargon

  • Last-In-First-Out (LIFO) — A method of valuing inventory that uses the cost of the most recent item in inventory first. The New York Times Financial Glossary …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.