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:

Proteins

Large, complex molecules essential to the structure, function, and regulation of the body's cells, tissues, and organs.

Blood

A vital fluid in organisms that transports necessary substances such as nutrients and oxygen to the cells and carries waste products away.

Thymus Gland

A primary lymphoid organ of the immune system, located in the upper anterior part of the chest cavity, playing a vital role in the development of T cells.

White Blood Cells

Cells of the immune system that help protect the body against infections and foreign invaders, including bacteria, viruses, and parasites.