The LIFO Reserve is the difference between the LIFO cost of inventory and what the cost of that inventory would be under FIFO.

Question

Quizplus · Accepted Answer

The LIFO Reserve represents the difference between the LIFO and FIFO methods of inventory valuation. It is calculated by subtracting the value of inventory calculated under the FIFO method from the value of inventory calculated under the LIFO method.

The LIFO Reserve Is the Difference Between the LIFO Cost