Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 88

Multiple Choice

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 are the degrees of freedom?

• A) 4
• B) 5
• C) 15
• D) 10