[furst-in, furst-out] 
| 1. | an inventory plan that assumes that items purchased first will be sold first and that by valuing inventory items at the price of the most recent purchases, inventory values will be comparable to any rise in prices. Abbreviation: FIFO Compare last-in, first-out. |
| 2. | Computers. FIFO (def. 2). |
First In, First Out - FIFO
An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation.
Investopedia Commentary
For taxation purposes, FIFO assumes that the assets that are remaining in inventory are matched to the assets that are most recently purchased or produced. Because of this assumption, there are a number of tax minimization strategies associated with using the FIFO asset-management and valuation method.
Related Links
Inventory Valuation For Investors: FIFO And LIFO
See also: Asset Management, Corporate Tax, Income Tax, Inventory, Last in First Out (LIFO), Taxes