last-in-first-out cost

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. Compare first-in-first-out cost; next-in-first-out cost

Big dictionary of business and management. 2014.

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  • 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… …   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… …   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

  • next-in-first-out cost — NIFO cost A method of valuing units of raw material or finished goods issued from stock by using the next unit price at which a consignment will be received for pricing the issues. It is effectively using replacement cost as a stock valuation… …   Accounting dictionary

  • next-in-first-out cost — NIFO cost A method of valuing units of raw material or finished goods issued from stock by using the next unit price at which a consignment will be received for pricing the issues. It is effectively using replacement cost as a stock valuation… …   Big dictionary of business and management

  • 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

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