What Does FIFO Stand For?

FIFO stands for First In First Out

FIFO, or First In First Out, is an inventory management and accounting principle where the oldest items in stock are sold or used first, ensuring that products are managed in the order they were acquired. This method helps reduce spoilage and obsolescence in inventory systems, maintains accurate financial records, and improves operational efficiency by aligning the flow of goods with consumption patterns. FIFO is widely used in various industries, including retail, manufacturing, and logistics, to optimize inventory turnover and enhance cash flow.

Other Meanings for FIFO