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 decision at the 5% level of signiﬁcance?
A) Looking at the large P-value of .2019 we conclude LIFO is more effective.
B) Reject the null hypothesis and conclude LIFO is more effective.
C) Reject the alternate hypothesis and conclude LIFO is more effective.
D) The large P-value of .2017 indicates that there is a good chance of getting this sample data when the two methods are in fact not signiﬁcantly different, so we conclude that LIFO is

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 decision at the 5% level of signiﬁcance? 
A) Looking at the large P-value of .2019 we conclude LIFO is more effective. 
B) Reject the null hypothesis and conclude LIFO is more effective. 
C) Reject the alternate hypothesis and conclude LIFO is more effective. 
D) The large P-value of .2017 indicates that there is a good chance of getting this sample data when the two methods are in fact not signiﬁcantly different, so we conclude that LIFO is

Quizplus · Accepted Answer

The large P-value of .2017 indicates that there is a good chance of getting this sample data

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO