Which of the Following Statements Regarding Comparisons Made in Managing

question 98

Multiple Choice

Which of the following statements regarding comparisons made in managing inventory is not true?

• A) In making comparisons of financial statements, it is desirable to compare data calculated using the same inventory costing methods.
• B) The inventory turnover ratio and days to sell measure will be affected by the cost flow assumptions used, which causes problems for financial statements users.
• C) Because of the use of different costing methods, comparisons of different companies are more difficult.
• D) An increase in inventory account balances always indicates a less favorable situation.

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Definitions:

Regression Coefficients

Quantitative measures in statistical models representing the change in the dependent variable for a one-unit change in an independent variable, assuming all other variables are held constant.

F-test

A group of statistical tests that compare the variances among different sample groups to ascertain if they come from populations with equal variances.

Independent Variables

The variables that are manipulated or categorised to determine their effect on the dependent variable in an experiment.

Observations

Data collected during an experiment or research that are analyzed to draw conclusions.