Last in, first out (LIFO)

Definition:

An accounting method that fixes the cost of goods sold to the most recent purchases. Hence, if prices are generally rising, LIFO will lead to lower accounting profitability.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Performance shares

Shares of stock paid out to managers only if the company makes certain sales, earnings per share, or other similar criteria.

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