Assume that Barber Co. uses the LIFO inventory costing method for both tax and financial reporting purposes. The balance sheet reports inventories at $297 million. Then, in its footnotes, the company reports that inventories would have been $327 million had the company used the FIFO method.
The difference between these two numbers ($30 million) is referred to as:

Question

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The difference between the LIFO and FIFO inventory values ($30 million) is referred to as the LIFO reserve. This amount represents the additional inventory cost that would be reported if the FIFO method were used instead of LIFO.

Assume That Barber Co