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 $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower? If you use the 5% level of significance, what is the critical t value?
A) +2.571
B) ±2.776
C) +2.262
D) ±2.228
E) None of these statements are correct.

Question

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 $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower?  If you use the 5% level of significance, what is the critical t value?
A) +2.571 
B) ±2.776 
C) +2.262 
D) ±2.228 
E) None of these statements are correct.

Quizplus · Accepted Answer

The Answer of 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 $000) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower?  If you use the 5% level of significance, what is the critical t value?
A) +2.571 
B) ±2.776 
C) +2.262 
D) ±2.228 
E) None of these statements are correct.

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO