Many companies use LIFO for both tax and internal reporting purposes.

Name: Many companies use LIFO for both tax and internal reporting purposes.
Brand: Quizplus
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Quizplus · Accepted Answer

Most companies do not use LIFO (Last In, First Out) for both tax and internal reporting purposes due to the complexity and restrictions in some jurisdictions. Instead, they might use LIFO for tax purposes to reduce taxable income but prefer FIFO (First In, First Out) or average cost methods for internal reporting to better reflect the actual flow of goods.

Many Companies Use LIFO for Both Tax and Internal Reporting