{"id":12865,"date":"2025-04-18T09:39:00","date_gmt":"2025-04-18T13:39:00","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=12865"},"modified":"2025-04-17T10:40:07","modified_gmt":"2025-04-17T14:40:07","slug":"fifo-vs-lifo","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/fifo-vs-lifo\/","title":{"rendered":"FIFO vs LIFO: Key differences, formulas and examples"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tFIFO vs LIFO: Key differences, formulas and examples\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-04-18T09:39:00-04:00\">April 18, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"FIFO vs LIFO: Key differences, formulas and examples\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/fifo-vs-lifo\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n<p>Tracking costs accurately is essential for effective inventory management. <\/p>\n\n\n\n<p>Two of the most common inventory valuation methods are FIFO (First In, First Out) and LIFO (Last In, First Out).\u00a0<\/p>\n\n\n\n<p>These methods impact everything from your cost of goods sold (COGS) to your taxable income and profitability.&nbsp;<\/p>\n\n\n\n<p>But what are the key differences between FIFO and LIFO?&nbsp;<\/p>\n\n\n\n<p>How do you calculate FIFO and LIFO, and which method is right for your business?&nbsp;<\/p>\n\n\n\n<p>By the end, you will have a clear understanding of inventory valuation and a better insight into how inventory management software simplifies the management of FIFO and LIFO.<\/p>\n\n\n\n<p><strong>Here\u2019s what we\u2019ll cover:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-fifo\" data-level=\"2\">What is FIFO?<\/a><\/li><li><a href=\"#h-advantages-and-disadvantages-of-fifo\" data-level=\"2\">Advantages and disadvantages of FIFO<\/a><\/li><li><a href=\"#h-what-is-lifo\" data-level=\"2\">What is LIFO?<\/a><\/li><li><a href=\"#h-advantages-and-disadvantages-of-lifo\" data-level=\"2\">Advantages and disadvantages of LIFO<\/a><\/li><li><a href=\"#h-lifo-and-fifo-examples\" data-level=\"2\">LIFO and FIFO examples<\/a><\/li><li><a href=\"#h-fifo-vs-lifo-key-differences\" data-level=\"2\">FIFO vs. LIFO: Key differences<\/a><\/li><li><a href=\"#h-other-factors-to-consider-when-choosing-fifo-vs-lifo\" data-level=\"2\">Other factors to consider when choosing FIFO vs LIFO<\/a><\/li><li><a href=\"#h-lifo-vs-fifo-vs-weighted-average-cost\" data-level=\"2\">LIFO vs. FIFO vs. Weighted average cost<\/a><\/li><li><a href=\"#h-strengthen-your-finances-inventory-management-software\" data-level=\"2\">Strengthen your finances inventory management software<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-fifo\">What is FIFO?<\/h2>\n\n\n\n<p>FIFO (First In, First Out) is an inventory valuation method where your business sells or uses the oldest stock first.&nbsp;<\/p>\n\n\n\n<p>This approach mirrors the natural flow of inventory, making sure older products are used before they expire or become obsolete.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why FIFO matters for your business<\/h3>\n\n\n\n<p>It increases net profit in inflationary periods because older, cheaper inventory is used first.<\/p>\n\n\n\n<p>FIFO reduces waste when your business is dealing with perishable goods.<\/p>\n\n\n\n<p>It reflects current inventory value more accurately when prices are rising.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-and-disadvantages-of-fifo\">Advantages and disadvantages of FIFO<\/h2>\n\n\n\n<p>Choosing FIFO as your inventory valuation method can significantly impact your business\u2019s profitability, tax liability, and financial reporting.&nbsp;<\/p>\n\n\n\n<p>Understanding the benefits and potential drawbacks will help you decide whether FIFO fits your inventory management strategy.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-good-for-record-keeping\"><strong>Good for record-keeping<\/strong><\/h4>\n\n\n\n<p>FIFO constantly uses up the oldest inventory layers, reducing the need for extensive records. <\/p>\n\n\n\n<p>This makes it easier to monitor your inventory value and predict gross profit.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-higher-profits-during-inflation\"><strong>Higher profits during inflation<\/strong><\/h4>\n\n\n\n<p>Since FIFO sells older, lower-cost inventory first, your profits appear higher when prices rise.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-reflects-actual-inventory-flow\"><strong>Reflects actual inventory flow<\/strong><\/h4>\n\n\n\n<p>This method follows the natural movement of stock, making it ideal if your business sells perishable or time-sensitive products.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-improves-financial-transparency\"><strong>Improves financial transparency<\/strong><\/h4>\n\n\n\n<p>FIFO clarifies inventory costs and aligns well with financial reporting standards.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-higher-taxes-during-inflation\"><strong>Higher taxes during inflation<\/strong><\/h4>\n\n\n\n<p>Increased profits result in a higher taxable income, which could lead to more significant tax liabilities for your business.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-less-accurate-cost-tracking-in-volatile-markets\"><strong>Less accurate cost tracking in volatile markets<\/strong><\/h4>\n\n\n\n<p>If inventory prices fluctuate frequently, using older costs for COGS may not reflect the true cost of replacement stock, potentially impacting pricing decisions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-lifo\">What is LIFO?<\/h2>\n\n\n\n<p>LIFO (Last In, First Out) is the opposite of FIFO\u2014it assumes that the newest inventory is sold first, while older stock remains on the books.&nbsp;<\/p>\n\n\n\n<p>This method can significantly impact your business\u2019s financial statements, especially during inflation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The LIFO formula<\/h3>\n\n\n\n<p>The LIFO formula represents:&nbsp;<\/p>\n\n\n\n<p><strong>LIFO Cost of Goods Sold (COGS) = cost of newest inventory \u00d7 units sold<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-and-disadvantages-of-lifo\">Advantages and disadvantages of LIFO<\/h2>\n\n\n\n<p>LIFO can be a strategic choice for businesses looking to reduce taxable income, but it also has limitations depending on accounting regulations and financial reporting goals.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s a breakdown of its pros and cons:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-higher-cogs-and-lower-taxable-income-during-inflation\"><strong>Higher COGS and lower taxable income during inflation<\/strong><\/h4>\n\n\n\n<p>LIFO help your business reduce tax liability by using newer, more expensive inventory first. This method is great for keeping tax costs low.&nbsp;<\/p>\n\n\n\n<p>It\u2019s useful for retail companies that need to stay on top of trends and quickly sell fashionable items.&nbsp;<\/p>\n\n\n\n<p>It\u2019s also helpful for supermarkets dealing with fluctuating food prices.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-can-improve-cash-flow\"><strong>Can improve cash flow<\/strong><\/h4>\n\n\n\n<p>By lowering taxable income, your business may have more cash on hand.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-not-permitted-under-ifrs\"><strong>Not permitted under IFRS<\/strong><\/h4>\n\n\n\n<p>If you\u2019re an international business, you may not be allowed to use LIFO for tax purposes.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-lower-inventory-value-on-financial-statements\"><strong>Lower inventory value on financial statements<\/strong><\/h4>\n\n\n\n<p>Since older, lower-cost inventory remains on the books, it can make your financial statements look weaker.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-lifo-and-fifo-examples\">LIFO and FIFO examples<\/h2>\n\n\n\n<p>Understanding how FIFO and LIFO impact cost of goods sold (COGS) is easier with real-world examples.<\/p>\n\n\n\n<p>Below, see how each method is applied to the same inventory purchases and sales, leading to different financial outcomes.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example of calculating FIFO<\/h3>\n\n\n\n<p>Imagine you are the inventory manager of a clothing store warehouse.&nbsp;<\/p>\n\n\n\n<p>Your business purchases inventory in the following order.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>January: 100 units at $10 each<\/li>\n\n\n\n<li>February: 100 units at $12 each<\/li>\n<\/ul>\n\n\n\n<p>Later, in March, a total of 120 units are sold.&nbsp;<\/p>\n\n\n\n<p>Using the FIFO inventory method formula, the oldest stock is sold first:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The first 100 units from the January purchase are sold at $10 each.<\/li>\n\n\n\n<li>The remaining 20 units come from the February purchase at $12 each.<\/li>\n<\/ul>\n\n\n\n<p>COGS = (100\u00d710) + (20\u00d712)<\/p>\n\n\n\n<p>COGS= 1000 + 140 = 1,240<\/p>\n\n\n\n<p>Therefore, the cost of goods sold (COGS) under FIFO is $1,240.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example of calculating LIFO<\/h3>\n\n\n\n<p>Using the same purchase data, imagine your business buys inventory on the following dates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>January: 100 units at $10<\/li>\n\n\n\n<li>February: 100 units at $12<\/li>\n<\/ul>\n\n\n\n<p>Later, in March, your business sells 120 units.&nbsp;<\/p>\n\n\n\n<p>Under LIFO inventory method formula, the most recent stock is sold first:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The first 100 units from the February purchase are sold at $12 each.<\/li>\n\n\n\n<li>The remaining 20 units come from the January purchase at $10 each.<\/li>\n<\/ul>\n\n\n\n<p>COGS = (100\u00d712) + (20\u00d710)<\/p>\n\n\n\n<p>COGS = 1,200 + 200 = 1,400<\/p>\n\n\n\n<p>Your cost of goods sold (COGS) under LIFO is $1,400, which is higher than FIFO\u2019s $1,240.&nbsp;<\/p>\n\n\n\n<p>This example highlights how LIFO results in higher costs and lower reported profits, particularly during periods rising prices, making it a common choice for businesses looking to reduce taxable income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fifo-vs-lifo-key-differences\">FIFO vs. LIFO: Key differences<\/h2>\n\n\n\n<p>FIFO and LIFO differ in how they manage inventory costs, affecting financial statements, tax liabilities, and overall business profitability.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s how they compare:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Cost flow assumption<\/h4>\n\n\n\n<p>FIFO follows a First In, First Out approach, meaning the oldest inventory is sold first.&nbsp;<\/p>\n\n\n\n<p>LIFO, on the other hand, operates under a Last In, First Out assumption, where the newest inventory is sold first.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Inventory valuation<\/h4>\n\n\n\n<p>FIFO calculates cost of goods sold (COGS) based on older, lower-cost inventory, while LIFO uses the most recent, higher-cost inventory for COGS calculations.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Impact of inflation<\/h4>\n\n\n\n<p>FIFO typically results in lower COGS and higher profits, leading to higher taxes when prices are rising.&nbsp;<\/p>\n\n\n\n<p>In contrast, LUFO leads to higher COGS and lower profits, which can help businesses reduce taxable income during inflation.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Complexity of fluctuation reporting<\/h4>\n\n\n\n<p>Using FIFO, the cost of goods usually stays stable, making it easy to track inventory and costs.&nbsp;<\/p>\n\n\n\n<p>Prices can change with inflation or deflation, but the inventory layers generally show recent prices.&nbsp;<\/p>\n\n\n\n<p>With LIFO, inventory layers can stick around for a long time, making average costs vary and reporting tricky.&nbsp;<\/p>\n\n\n\n<p>These layers make it hard to report price changes, as altering one can affect the cost of items sold.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Balance sheet impact<\/h4>\n\n\n\n<p>FIFO values ending inventory at the most recent (and often higher) purchase costs, making financial statements appear stronger.&nbsp;<\/p>\n\n\n\n<p>LIFO, however, values inventory at older, lower costs, which can make your balance sheet look weaker.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Regulatory compliance<\/h4>\n\n\n\n<p>FIFO is permitted under both IRS and GAAP, making it a globally accepted inventory valuation method.&nbsp;<\/p>\n\n\n\n<p>LIFO, however, is not allowed under IFRS but remains permitted under US GAAP, making it a viable option if you\u2019re business is based in the U.S.<\/p>\n\n\n\n<p>Choosing between FIFO and LIFO depends on your business goals, tax strategy, and financial reporting needs.<\/p>\n\n\n\n<p>If reducing taxable income is a priority for your financial strategy, LIFO may be beneficial\u2014if allowed in your region.&nbsp;<\/p>\n\n\n\n<p>For a more transparent and widely accepted method, FIFO is often the preferred choice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-factors-to-consider-when-choosing-fifo-vs-lifo\">Other factors to consider when choosing FIFO vs LIFO<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-regulatory-compliance\"><strong>Regulatory compliance<\/strong><\/h3>\n\n\n\n<p>Some countries do not allow LIFO for tax purposes (e.g., IFRS does not permit LIFO).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-tax-implications\"><strong>Tax implications<\/strong><\/h3>\n\n\n\n<p>LIFO can be beneficial in times of inflation to lower taxable income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory-management\"><strong>Inventory management<\/strong><\/h3>\n\n\n\n<p>FIFO aligns with the natural flow of goods, making it ideal for perishable items.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-lifo-vs-fifo-vs-weighted-average-cost\">LIFO vs. FIFO vs. Weighted average cost<\/h2>\n\n\n\n<p>While FIFO and LIFO are the most used methods, weighted average cost (WAC) offers a third options that smooths out price fluctuations.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s how each method stacks up:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FIFO<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower COGS and higher profits during inflation.<\/li>\n\n\n\n<li>Provides a clearer picture of inventory costs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">LIFO<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher COGS and lower profits during inflation.<\/li>\n\n\n\n<li>Reduces taxable income by increasing expenses.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Weighted average cost (WAC)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Average inventory costs by dividing the total cost of goods available for sale by the total units available, creating a consistent per-unit cost.&nbsp;<\/li>\n\n\n\n<li>Smooths out price fluctuations, making it a balanced approach between FIFO and LIFO.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-which-method-is-best-for-your-business\">Which method is best for your business?<\/h3>\n\n\n\n<p><strong>Weighted Average Cost<\/strong> for a balanced approach that minimises price fluctuations.<\/p>\n\n\n\n<p><strong>FIFO <\/strong>is best if you want higher profits and accurate inventory tracking.<\/p>\n\n\n\n<p><strong>LIFO<\/strong> to lower taxable income during inflation (if allowed).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-strengthen-your-finances-inventory-management-software\">Strengthen your finances inventory management software<\/h2>\n\n\n\n<p>Whether you run a small or growing business, the right <a href=\"https:\/\/www.sage.com\/en-ca\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management software<\/a> helps streamline operations by automating FIFO, LIFO, or Weighted Average Cost calculations.\u00a0<\/p>\n\n\n\n<p>Built-in tools for tracking, valuing, and managing stock makes sure your team stays accurate and efficient at every stage of the inventory process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">With the right solution, you can:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Track inventory costs with ease: <\/strong>monitor stock movements and pricing in real time to maintain precise records.&nbsp;<\/li>\n\n\n\n<li><strong>Generate real-time financial reports:<\/strong> gain valuable insights into inventory costs, profitability, and trends to support better decision-making.<\/li>\n\n\n\n<li><strong>Ensure tax compliance: <\/strong>automate calculations and reporting to meet regulatory requirements and avoid costly errors.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ready-to-optimise-your-inventory-management\">Ready to optimise your inventory management?\u00a0<\/h3>\n\n\n\n<p>Subscribe for the Sage Advice newsletter for expert accounting tips to keep your financials in check.&nbsp;<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn differences between FIFO vs. LIFO, and how to calculate FIFO and LIFO step by step. 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