When Costs to Purchase Inventory Are Rising,using LIFO Leads to Reporting

question 33

Multiple Choice

When costs to purchase inventory are rising,using LIFO leads to reporting ______ cost of goods sold and ______ net income than FIFO.

• A) higher; lower
• B) higher; higher
• C) lower; lower
• D) lower, higher

---

Definitions:

Sign Test

A non-parametric test used to determine if there is a statistically significant difference between paired or matched samples by examining the signs of differences without assuming any particular distribution.

Obstacle Courses

Physical or metaphorical challenges composed of multiple obstacles that require agility, strength, and strategic thinking to navigate or overcome.

Nonparametric Tests

Statistical tests that do not assume the data being analyzed follows a particular distribution, often used when data doesn't meet the assumptions of parametric tests.

Z-statistic

A measure that describes how far a data point is from the mean, expressed in units of standard deviation.