Last In/First Out Method in Accounting: Definition & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What does Last-In/First-Out method for inventory management stipulate?

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1. What is one reason to use Last-In/First-Out method?

2. What products are not ideal for LIFO inventory management?

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About This Quiz & Worksheet

This quiz tests you on definitions related to the LIFO method. The questions ask you to define the method and identify the reasons for its use. Other questions will test you on the types of products typically associated with the method.

Quiz & Worksheet Goals

The quiz will test you on the following topics:

  • Last In/First Out inventory management
  • Products associated with LIFO
  • Reasons to use LIFO

Skills Practiced

The quiz helps you practice these skills:

  • Making connections - use understanding of the concept of the LIFO method
  • Critical thinking - apply relevant concepts to examine inventory information in a different light
  • Information recall - access the knowledge you've gained regarding the LIFO method
  • Knowledge application - use your knowledge to answer questions about LIFO

Additional Learning

Finish the quiz and head over to the Last-In/First-Out (LIFO) Methods in Accounting: Definition and Examples lesson. This lesson has been specially designed to complement the quiz and improve your learning experience. It covers the following objectives:

  • Understand inventory and inventory management
  • Define the LIFO method
  • Explore the pros and cons of the LIFO method
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