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.