ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 50

11. The change in the LIFO Reserve from one period to the
next is recorded as an adjustment to Cost of Goods Sold.

12. Many companies use LIFO for both tax and internal
reporting purposes.

13. LIFO liquidation often distorts net income, but usually
leads to substantial tax savings.