Dictionary of Procurement Terms

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  • First In-First Out (FIFO)

    An inventory costing method in which stock acquired earliest is assumed to be sold (issued) first, leaving stock acquired more recently in inventory. Under FIFO, inventory is valued near current replacement costs. Provides for a physical rotation of the stock so that the oldest stock is used first. (Nash, Schooner, & O’Brien, 1998)

    See Also: Last In-First Out (LIFO)

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