FIFO: related pages

Cost of goods sold (COGS)

The accrued cost of the goods (or services) supplied in a period; the difference between sales and gross profit.

LIFO

A method of valuing stocks (inventory) by assuming that the most recent purchases are used first.

Stock (inventory)

Current assets held for sale, or for processing and subsequent re-sale.

Net realisable value

Net realisable value can be used used to calculate the value of assets when cost of purchase cannot be used

WIP

The part of stocks (inventory) that has had some work done on it, but which has not yet been made into goods ready for sale.

Replacement cost

A profit figure that is calculated using the cost of supplies at the cost of replacing supplies at current prices.

Average cost

A book value for stocks (inventory) calculated using a moving average of the price of stocks received.