Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 30

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 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.

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Definitions:

Retroactive Interference

A phenomenon where new memories impair the retrieval of older memories.

High School Classmates

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A theory suggesting that memory fades and becomes less accurate over time due to the mere passage of time, leading information to "decay."

Sensory Memory

The shortest-term element of memory, which allows the retention of impressions of sensory information after the original stimuli have ended.