FIFO

An abbreviation for first-in, first-out, a method employed in accounting for the identification and valuation of the inventory of a business.

FIFO assumes that the first goods purchased are the first sold. As a consequence, the items that remain in the inventory at the end of the year are assumed to be those purchased last.

First-in, first-out (FIFO) is a method of inventory control that means the inventory bought first is sold first.
AP/WIDE WORLD PHOTOS