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Last In First Out (LIFO) is a type of accounting used if you have inventory in your business.
In this type of accounting, you assess inventory based on the most recent stuff you bought. If you buy 100 copper pipes at $10 and then buy 100 more a few months later at $15 each, you're going to count the $15 pipes until 100 are sold and then assess the next 100 sold after that at the $10 price.