The LIFO Conformity rule states that if a company uses LIFO for tax purposes it must also use it for financial reporting purposes.

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The LIFO Conformity rule is true, stating that if a company chooses to use LIFO for tax purposes, it must also use LIFO for financial reporting purposes. This rule ensures consistency in the method of inventory valuation used by a company for both tax and financial reporting purposes.

The LIFO Conformity Rule States That If a Company Uses