The traditional LIFO approach which tends to emphasize specific goods in costing LIFO inventories is often unrealistic because: O it does not result in a proper matching of costs and revenues in a particular period. O cash flows are often distorted and can be delayed for one or two subsequent periods. O erosion of the LIFO inventory can easily occur which often leads to distortions of net income and large tax payments. O future price declines will adversely affect the ability to accurately report future earnings