What is the difference between lifo and fifo?

Question

What is the difference between lifo and fifo?

Answer 1

LIFO:Last  in First OUT

FIFO:First in First out

Answer 2

I think the main difference is how fast the thing goes out in terms of inventory. As i remember it, lifo is last in first out and fifo is first in first out (you are talking about accounting stuff right?)

LIFO is recording and selling the newest stuff first, while fifo is recording and selling the older stuff first. The article will tell you more

Answer 3

This relates to inventory acounting method

LIFO (Last In First OUT) means that when you sell an item you account for that as you sold the last item you bought (i.e. at the last purchase price).

FIFO (First In First Out) means that when you sell an item you account for that as you sold the older item available in inventory (i.e. at the older purchase price).

The accounting method has an impact on value of the inventory. In a rising prices environment, value of the inventory accounted using LIFO method is lower that the one accounted using FIFO method.