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FIFO
"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.
Ending Inventory
The worth of items ready for sale at the conclusion of an accounting cycle, determined by adding the initial inventory to acquisitions and subtracting the cost of goods sold.
Perpetual Inventory System
A financial recording approach that instantly logs inventory transactions upon sale or purchase using electronic point-of-sale systems and enterprise resource planning software.
LIFO
Last In, First Out, an inventory valuation method that assumes the goods most recently made or purchased are the first to be sold.
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