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Financial Terms | |
First-In, First-Out (FIFO) Inventory Method |
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Definition of First-In, First-Out (FIFO) Inventory MethodFirst-In, First-Out (FIFO) Inventory MethodThe inventory cost-flow assumption that
Related Terms:ABC inventory classificationA method for dividing inventory into classifications, algebraic methoda process of service department cost allocation Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average inventoryThe beginning inventory for a period, plus the amount at the end of Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off ![]() Blanket inventory lienA secured loan that gives the lender a lien against all the borrower's inventories. Book inventoryThe amount of money invested in inventory, as per a company’s Bootstrapping, bootstrap methodAn arithmetic method for backing an Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be BreakoutA rise in a security's price above a resistance level (commonly its previous high price) or drop BuyoutPurchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a CashoutRefers to a situation where a firm runs out of cash and cannot readily sell marketable securities. Completed-Contract MethodA contract accounting method that recognizes contract revenue Crowding OutDecreases in aggregate demand which accompany an expansionary fiscal policy, dampening the impact of that policy. Current rate methodUnder this currency translation method, all foreign currency balance-sheet and income Customary payout ratiosA range of payout ratios that is typical based on an analysis of comparable firms. Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Days' sales outstandingAverage collection period. Direct estimate methodA method of cash budgeting based on detailed estimates of cash receipts and cash Direct methodA method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows. direct methoda service department cost allocation approach Direct-Method FormatA format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities. Direct write-off methodA method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers. Distribution inventoryinventory intended for shipment to customers, usually dividend growth methoda method of computing the cost Dividend payout ratioPercentage of earnings paid out as dividends. dividend payout ratioComputed by dividing cash dividends for the year dividend payout ratioPercentage of earnings paid out as dividends. dollar days (of inventory)a measurement of the value of inventory for the time that inventory is held Down-and-out optionBarrier option that expires if asset price hits a barrier. Ending inventoryThe dollar value or unit total of goods on hand at the end of an Equity MethodAccounting method for an equity security in cases where the investor has sufficient Fallout riskA type of mortgage pipeline risk that is generally created when the terms of the loan to be Feasible target payout ratiosPayout ratios that are consistent with the availability of excess funds to make FIFO (First In, First Out)An inventory valuation method that presumes that the first units received were the first ones FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent Finished goods inventoryGoods that have been completed by the manufacturing Finished goods inventoryCompleted inventory items ready for shipment to First-callWith CMOs, the start of the cash flow cycle for the cash flow window. First in, first-out costing method (FIFO)A process costing methodology that assigns the earliest First-In-First-Out (FIFO)A method of valuing the cost of goods sold that uses the cost of the oldest item in First-in, first-out (FIFO)A method of accounting for inventory. First-in, first-out (FIFO)An inventory valuation method under which one assumes that the First notice dayThe first day, varying by contracts and exchanges, on which notices of intent to deliver First-pass regressionA time series regression to estimate the betas of securities portfolios. First To Die CoverageThis means that there are two or more life insured on the same policy but the death benefit is paid out on the first death only. If two or more persons at the same address are purchasing life insurance at the same time, it is wise to compare the cost of this kind of coverage with individual policies having a multiple policy discount. Flow-through methodThe practice of reporting to shareholders using straight-line depreciation and Fluctuation inventoryExcess inventory kept on hand to provide a buffer against Freight outThe transportation cost associated with the delivery of goods from a company Full-Cost MethodA method of accounting for petroleum exploration and development expenditures Full-Employment OutputThe level of output produced by the economy when operating at the natural rate of unemployment. Full-payout leaseSee: financial lease. Hedge inventoryExcess inventories kept on hand as a buffer against contingent high-low methoda technique used to determine the fixed In-transit inventoryinventory currently situated between its shipment and delivery Inactive inventoryParts with no recent prior or forecasted usage. Indirect methodA method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities. Indirect-Method FormatA format for the operating section of the cash-flow statement that input-output coefficienta number (prefaced as a multiplier Input-output tablesTables that indicate how much each industry requires of the production of each other InventoryFor companies: Raw materials, items available for sale or in the process of being made ready for InventoryGoods bought or manufactured for resale but as yet unsold, comprising raw materials, work-in-progress and finished goods. InventoryThe cost of the goods that a company has available for resale. InventoryGoods that a firm stores in anticipation of its later sale or use as an input. InventoryThe cost of unsold goods that are held for sale in the ordinary course of business or InventoryThose items included categorized as either raw materials, work-inprocess, Inventory adjustmentA transaction used to adjust the book balance of an inventory Inventory DaysThe number of days it would take to sell the ending balance in inventory at the Inventory diversionThe redirection of parts or finished goods away from their intended Inventory issueA transaction used to record the reduction in inventory from a location, Inventory loanA secured short-term loan to purchase inventory. The three basic forms are a blanket Inventory receiptThe arrival of an inventory delivery from a supplier or other Inventory returnsinventory returned from a customer for any reason. This receipt inventory shrinkageA term describing the loss of products from inventory Inventory ShrinkageA shortfall between inventory based on actual physical counts and inventory Inventory turnoverThe ratio of annual sales to average inventory which measures the speed that inventory INVENTORY TURNOVERThe number of times a company sold out and replaced its average stock of goods in a year. The formula is: Inventory turnoverThe number of times per year that an entire inventory or a Inventory TurnoverRatio of annual sales to inventory, which shows how many times the inventory of a firm is sold and replaced during an accounting period. inventory turnover ratioThe cost-of-goods-sold expense for a given Inventory Turnover RatioProvides a measure of how often a company's inventory is sold or inventory write-downRefers to making an entry, usually at the close of a Investor falloutIn the mortgage pipeline, risk that occurs when the originator commits loan terms to the judgmental method (of risk adjustment)an informal method of adjusting for risk that allows the decision maker Just-in-time inventory systemsSystems that schedule materials/inventory to arrive exactly as they are Last-In-First-Out (LIFO)A method of valuing inventory that uses the cost of the most recent item in Last-in, first-out (LIFO)An inventory costing methodology that bases the recognized cost of Last-in, first-out (LIFO)An inventory valuation method under which one assumes that the Last-In, First-Out (LIFO) Inventory MethodThe inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory Last-in, first-out (LILO)A method of accounting for inventory. Leveraged buyoutThe purchase of one business entity by another, largely using borrowed Leveraged buyout (LBO)A transaction used for taking a public corporation private financed through the use leveraged buyout (LBO)Acquisition of the firm by a private group using substantial borrowed funds. LIFO (Last-in-first-out)The last-in-first-out inventory valuation methodology. A method of valuing LIFO (Last In, First Out)An inventory valuation method that presumes that the last units received were the first ones Lock-outWith PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |