What is "first in first out"

alt. 1 (context accounting English) A method of inventory accounting that values items withdrawn from inventory at the cost of the oldest item assumed to remain in inventory. 2 (context operations English) A policy of serving first what has arrived for service first. n. 1 (context accounting English) A method of inventory accounting that values items withdrawn from inventory at the cost of the oldest item assumed to remain in inventory. 2 (context operations English) A policy of serving first what has arrived for service first.

n. inventory accounting in which the oldest items (those first acquired) are assumed to be the first sold [syn: FIFO]