First In, First Out (FIFO)
A valuation and assetmanagement
method in which goods
acquired or produced first are used, sold, or
disposed of first. See also: Last In-First Out.
First-Article Inspection (FAI)
A term usually used
in the purchase of custom-made goods
(design specification). A qualitative method by
which the supplier must provide a final
production item for the purchaser’s review
and approval before the balance of the
production run is made and shipped by the
supplier. Also known as First-Article Testing.
The means by which a government
adjusts tax rates and spending levels to
influence the country's economy.
Tax hikes or spending cuts
intended to reduce aggregate demand.
Policy measures that a
government takes to reduce taxes or
regulations, or to increase government
spending to encourage and boost economic
The 12-month period used for
accounting purposes. A fiscal year generally
begins July 1 or October 1 for governments.
(The U.S. federal government’s fiscal year
begins October 1.)
Fit, Form, and Function
Physical, functional, and
performance characteristics or specifications
that uniquely identify a component or device
and determine its interchangeability in a
system or piece of equipment; used especially
when considering the suitability of a
suggested alternate or “equivalent.”
Physical assets such as property,
plant, and equipment.
Expenditure that is constant and does
not change, regardless of the quantity of the
goods or services produced.
Fixed Period Average
A mathematical calculation
used to divide the total usage during a fixed
period (generally 12 months), usually using
the last fiscal calendar, by the number of
months involved (generally 12). The resulting
average is the forecast for the entire
comparable future period. This is a straight
mathematical calculation that ignores current