In inventory control, last in, first out [LIFO] means that stock is charged out on the basis of the most recent prices paid. When inventory is replenished, the most recent purchase price is used as the next issue price irrespective of the actual price paid for the specific goods used. In times of inflation, this passes on material price changes, immediately leading to a higher cost of goods sold. See also First In, First Out.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
