Fifo First in first out means that the most recent purchases are considered first. LIFO means that the earliest purchases considered first in cogs. Is that correct? For example if my accounting period is from March 1st and I have purchases on March 2, March 4, March 6 With LIFO the order is March 2nd, March 4th and March 6th while with FIFO it would be March 6th, March 4th, March 2nd. Is this correct? If not, please correct me. I used to think it was the other way around but now I am not sure. Thank you.