The primary reason for the popularity of LIFO is that it gives:

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The primary reason for the popularity of LIFO is that it results in a lower income tax obligation when inventory costs are rising. This is because LIFO assumes that the most recently acquired inventory is sold first, which results in a higher cost of goods sold, and therefore, a lower taxable income. However, it does not necessarily provide better matching of physical flow and cost flow, simplified recordkeeping, or a simpler method to apply.

The Primary Reason for the Popularity of LIFO Is That