10 . In all cases when FIFO is used , the cost of goods sold would be the same whether a perpetual or periodic system is used .
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 .
14 . LIFO liquidations can occur frequently when using a specific-goods approach .