Accounting Procedures Allow a Business to Evaluate Their Inventory Costs

question 62

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. Based on the following results, does the LIFO method result in a lower cost of inventory than the FIFO method? If you use the 5% level of significance, what is the critical t value?

• A) +2.132
• B) ±2.132
• C) +2.262
• D) ±2.228

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Definitions:

Evolutionary History

The chronological sequence of biological events and processes that has led to the development and diversification of life on Earth over millions of years.

Phylogeny

The evolutionary history and lineage of species or a group of species.

Genetic Variation

The diversity in gene frequencies within a population, which contributes to the population's ability to adapt and evolve.

Adaptive Radiation

The rapid evolution of diversely adapted species from a common ancestor when introduced into new environmental circumstances.