ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 52

17. A disadvantage of LIFO is that it does not match more
recent costs against current revenues as well as FIFO.

18. The LIFO conformity rule requires that if a company
uses LIFO for tax purposes, it must also use LIFO for financial
accounting purposes.

19. Use of LIFO provides a tax benefit in an industry where
unit costs tend to decrease as production increases.

20. LIFO is inappropriate where unit costs tend to decrease
as production increases.