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?
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.

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? 
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.

Quizplus · Accepted Answer

Paired t-test.

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO