Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 83

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?
If you were to use Megastat to assist in your solution to this problem, which test would you use?

• A) Mean vs. Hypothesized value.
• B) Compare two independent groups.
• C) Paired observations.
• D) Proportion vs. Hypothesized value.
• E) Compare two independent proportions. M. Chi-square variance test.

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