Which countries use lifo

Would you consider telling us more about how we can do better? Taxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income. Inventory Valuation in Europe August 13, A. Kristina Zvinys. Under FIFO , businesses assume that the first inventory item purchased is the first one to be sold.

Under LIFO , businesses assume that the last inventory item purchased is the first one to be sold. Under the Weighted-Average Cost method, businesses assume that the cost of the units sold in any given year is the weighted-average cost of all the available inventories for sale that year. Personal Finance.

Your Practice. Popular Courses. Business Business Essentials. Business Essentials Guide to Mergers and Acquisitions. Table of Contents Expand. How Last in, First out Works. Criticism of LIFO. Example of LIFO. Fewer Inventory Write-Downs. The Bottom Line. Key Takeaway Last in, first out LIFO is a method used to account for how inventory has been sold that records the most recently produced items as sold first.

Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. Ending Inventory Ending inventory is a common financial metric measuring the final value of goods still available for sale at the end of an accounting period.

Inventory Management Definition Inventory management is the process of ordering, storing and using a company's inventory: raw materials, components, and finished products.

Investopedia is part of the Dotdash publishing family. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. Select personalised content.

Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile.

Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance.

Your Practice. Popular Courses. Table of Contents Expand. Understated Net Income. Outdated Balance Sheet.

LIFO Liquidations. Bottom Line. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

We also reference original research from other reputable publishers where appropriate.