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? What is the value of calculated t?
A) +0.93
B) ±2.776
C) +0.0.47
D) -2.028
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?  What is the value of calculated t?
A) +0.93 
B) ±2.776 
C) +0.0.47 
D) -2.028 
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?  What is the value of calculated t?
A) +0.93 
B) ±2.776 
C) +0.0.47 
D) -2.028 
E) None of these statements are correct.

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO