The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial accounting purposes.

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The LIFO (Last In, First Out) conformity rule mandates that if a company chooses to apply the LIFO method for tax reporting, it must also use LIFO for financial reporting to ensure consistency between tax and financial records.

The LIFO Conformity Rule Requires That If a Company Uses