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? 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.
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?  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. 
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?  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. 
E) None of these statements are correct

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO