Fifo full form: First In

First In, First Out, also known as FIFO, is a method for valuation of assets or inventories. Under the method, the goods that are produced first are disposed of first. The method also finds a place in the Indian accounting standards for inventory valuation. FIFO full form is First In, First Out. It refers to a method of inventory management where the first items to be added to inventory are the first to be sold or used. FIFO is an inventory costing method that assumes the oldest goods are sold first. Learn how FIFO works, its advantages and disadvantages, and how it contrasts with LIFO. FIFO — First In, First Out. It is a method of accounting and inventory management where the oldest stock or items go first, before the newer ones. This is particularly advantageous for sectors working with perishable and time-bound products, for example, food, medications, and retail.