The "Last-In, First-Out" (LIFO) method is an inventory management and accounting approach where the most recently acquired items are sold or used first. This means that the last items added to inventory are the first ones to be removed. LIFO is often used in industries where products have a limited shelf life or where prices are rising, as it can help reduce tax liabilities by matching higher costs with current revenues. In accounting, LIFO can affect financial statements and tax calculations. For example, during periods of inflation, using LIFO can result in lower reported profits because the higher costs of newer inventory are matched against revenues. This method is commonly applied in various sectors, including retail, manufacturing, and food services.