Exxon Mobil Corporation had net sales of $237,054 million, cost of goods sold of $107,658 million, and net income of $21,510 million in 2003. Inventories under the LIFO method used by the company were $8,136 million in 2004 and $7,665 million in 2003. Inventory would have been considerably higher in both years if the company had used FIFO.
Why do you suppose Exxon Mobil's management chooses to use the LIFO inventory method? On what economic conditions, if any, do those reasons depend?