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 $ thousands)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

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 $ thousands)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

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 $ thousands)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

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO