ACC 304 Experience Tradition / tutorialrank.com ACC 304 Experience Tradition / 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 .