The LIFO reserve is
A) the difference between the value of the inventory under LIFO and the value under FIFO.
B) an amount used to adjust inventory to the lower of cost or market.
C) the difference between the value of the inventory under LIFO and the value under average cost.
D) the amount used to adjust inventory to history cost.

Question

Quizplus · Accepted Answer

The LIFO reserve is the difference between the inventory valuation under the LIFO method and the FIFO method, reflecting the impact of using LIFO on the financial statements.

The LIFO Reserve Is