Accounting Procedures Allow a Business to Evaluate Their Inventory Costs

question 16

Multiple Choice

Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out) . A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference,they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. What is the null hypothesis?

• A)H₀: µ_d = 0
• B)H₀: µ_d ≠ 0
• C)H₀: µ_d ≤ 0
• D)H₀: µ_d ≥ 0

---

Definitions:

Biologically Predisposed

Having an innate tendency or susceptibility to certain conditions, behaviors, or responses based on genetic factors.

Offspring

The children or young born to a person, animal, or plant.

Gender-typed Mates

The preference for choosing partners who conform to traditional gender roles and behaviors.

Gender Inequality

A social condition marked by unequal treatment or perception of individuals based on their gender.