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 $1000) 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 null hypothesis?
A) µF = µL, or µd = 0
B) µF ≠ µL, or µd ≠ 0
C) µF ≤ µL
D) µF µL

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 $1000) 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 null hypothesis?
A) µF = µL, or µd = 0 
B) µF ≠ µL, or µd ≠ 0 
C) µF ≤ µL 
D) µF > µL

Quizplus · Accepted Answer

µF ≤ µL

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO