LIFO Reserve, Conversions, and Ratios

What does the LIFO reserve measure in inventory analysis?

The amount by which FIFO inventory exceeds LIFO inventory.

What does the LIFO reserve measure in inventory accounting?

The difference between FIFO and LIFO inventory values.

Why is the LIFO reserve added to inventory when converting from LIFO to FIFO?

Because LIFO inventory is lower than FIFO during rising prices.

What is the formula for inventory turnover?

$\text{Inventory turnover}=\frac{\text{COGS}}{\text{Average inventory}}$.