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 value of calculated t?
A) +0.93
B) ±2.776
C) +0.0.47
D) -2.028

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 value of calculated t?
A) +0.93 
B) ±2.776 
C) +0.0.47 
D) -2.028

Quizplus · Accepted Answer

+0.93

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO