exxon mobil corporation like many U.S. companies, use LIFO to value its inventory for financial reporting and tax purposes. In one recent year, this resulted in a cost of goods sold figure that was $5.6 billion higher than under FIFO. by increasing cost of goods sold, exxon mobill reduces net income, which reduces taxes. critics say that LIFO provides an unfair "tax dodge" As congress looks for more sources of tax revenue, some lawmarkers favor the elimination of LIFO. supporters of LIFO argue that the method is conceptually sound because it matches current costs with current revenues. in addition, they point out that this matching provides protection against inflation.