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 its ability to provide a lower income tax obligation because, under LIFO, the most recently acquired inventory items are assumed to be sold first, resulting in a higher cost of goods sold and a lower reported income. This is beneficial for companies that want to minimize their taxable income. While LIFO may also provide a better matching of physical flow and cost flow, simplified recordkeeping, and a simpler method to apply, these factors are not the primary reason for its popularity.

The Primary Reason for the Popularity of LIFO Is That