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Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed (FIFO - LIFO) for each product. Based on the following results, does the LIFO method result in a lower cost of inventory than the FIFO method?

Product FIFO (F LIFO (L) 225 119 100 212 248 221 100 113 200 245

What are the degrees of freedom?

Select one:

a. 4

b. 5

c. 15

d. 10

math   Advanced-Math   
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Answer #1

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