What is LOFO?
LOFO (Lowest In - First Out) refers to a process by which goods are stored in a certain way. As with the HIFO process, items are stocked based on price, so the goods that are produced cheaply are taken out of stock first. This means that at the end of a year only expensive items are stored in the warehouse.
The LOFO method is not allowed for the official balance sheet, whether commercial or tax. Only in the cost accounting this procedure is listed.