The LIFO difference (reserve)is the additional amount of inventory a company would report if it used FIFO instead of LIFO.

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The statement is true. The LIFO reserve is the difference between inventory reported under LIFO and inventory that would have been reported under FIFO, representing the additional amount of inventory that a company would report if it used FIFO instead of LIFO.

The LIFO Difference (Reserve)is the Additional Amount of Inventory a Company