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