Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 93

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 $ thousands) 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.

Grasp the basic concepts of distribution including variability, symmetry, modality, and directionality.

Understand the APA guidelines for constructing figures such as bar charts and frequency polygons.

Identify the characteristics of distributions based on their shapes (positively skewed, negatively skewed, symmetrical, etc.).

Understand the factors influencing job applicant outreach and the effectiveness of different recruitment sources.

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Definitions:

Units Produced

The total number of units of product a company manufactures over a specific period of time.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Relevant Activity Base

A factor that directly influences the costs incurred during a business activity, used for allocating costs in activity-based costing.

Decision-making Needs

The requirement for relevant, timely, and accurate information to make informed choices in business operations and strategies.