Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 57

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 $000) 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 decision at the 5% level of significance?

• A) Fail to reject the null hypothesis and conclude LIFO is more effective.
• B) Reject the null hypothesis and conclude LIFO is more effective.
• C) Reject the alternate hypothesis and conclude LIFO is more effective.
• D) Fail to reject the null hypothesis and conclude LIFO is not more effective.
• E) None of these statements are correct.

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Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Manic Without Psychotic Features

A mood disorder characterized by a period of abnormally and persistently elevated, expansive, or irritable mood without the presence of delusions or hallucinations.

Moderate

Describes something of average intensity or quality, not extreme in behavior or opinions.

Hebephrenic Schizophrenia

A subtype of schizophrenia characterized by disorganized behavior and speech, and blunted or inappropriate emotional responses.