Two common ways for companies to account for inventory are first-in/first-out, or FIFO, and last-in/last-out, or LIFO. In FIFO, the first units that arrive in the business are the first sold. In LIFO, ...

Learn how LIFO liquidation impacts businesses, why companies use this method during inflation, and see a real-world example to understand its financial benefits.

Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues ...

Over the past two years manufacturers and resellers have struggled to maintain inventory levels due to global supply chain issues, and now are facing the highest inflation rates since 1981.

If inflation were nonexistent, then all inventory valuation methods would produce the same results. Inflation is a measure of the rate of price increases in an economy. When prices are stable, the ...