LIFO (Last In, First Out)
LIFO, or Last In, First Out, is a method used to manage data or inventory where the most recently added items are the first ones to be removed or processed. Imagine a stack of plates: if you keep adding plates on top, the last plate you placed is the first one you'll take off when you need one. This principle is commonly applied in accounting and inventory management, where it reflects that newer inventory is sold or used before older stock, impacting financial reporting and tax calculations.
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LIFO, or Last In First Out, is a method used to manage data or inventory where the most recently added items are the first to be removed or used. Imagine a stack of plates: when you add a new plate, it goes on top, and when you need a plate, you take the top one off first. This approach is commonly used in accounting and computer science to manage resources efficiently. In accounting, it affects how inventory costs are recorded, often leading to different financial outcomes based on the order that items are sold or used.