Answer:
The difference between the value of the inventory under LIFO and the value under FIFO
Explanation:
The Lifo reserve an inventory account that represents the difference between the FIFO and LIFO inventory reporting methods. The account is used to bridge the gap between the two reporting systems. It is applied when a company uses FIFO to track stock movement and LIFO in preparing financial statements.
A credit balance in the LIFO reverse helps reduce the cost of inventory when reporting in the balance sheet.
