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 $ thousands) 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) +0.933
B) $\pm$2.776
C) +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 $ thousands) 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) +0.933 
B) $\pm$2.776 
C) +0.47 
D) -2.028

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 $ thousands) 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) +0.933 
B) $\pm$2.776 
C) +0.47 
D) -2.028

Accounting Procedures Allow a Business to Evaluate Their Inventory at LIFO