Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO

question 106

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? This example is what type of test?

• A) One sample test of means.
• B) Two sample test of means.
• C) Paired t-test.
• D) Test of proportions.

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