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.