LIFO (Last In First Out) and FIFO (First In First Out) are different of each other. In LIFO method it is assumed that the most recent products in a company's inventory have been sold first and uses those costs. On the other hand In FIFO, the oldest products in a company's inventory have been sold first and goes by those production costs. A company using the FIFO method could be offloading more recently acquired inventory first, or vice-versa with LIFO.