Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

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 $1000) 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