Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower? What is the degree of freedom?
A) 4
B) 5
C) 15
D) 10
E) 9

Question

Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower?  What is the degree of freedom?
A) 4 
B) 5 
C) 15 
D) 10 
E) 9

Quizplus · Accepted Answer

The Answer of Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower?  What is the degree of freedom?
A) 4 
B) 5 
C) 15 
D) 10 
E) 9

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO