Use of the LIFO inventory valuation method enables a company to report paper or phantom profits.

LIFO Inventory Valuation

Last-in, first-out method, an inventory costing method where the last items purchased are the first ones considered sold.

Phantom Profits

Profits that are recorded on the books but do not result in an actual cash benefit, often due to accounting practices or non-cash expenses.

Paper

Paper refers to a thin material composed of processed cellulose fibers derived from wood, rags, or grasses, and used for writing, printing, or packaging.