Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out)or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s)for five products with the LIFO and FIFO methods. To analyze the difference,they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. If you use the 5% level of significance,what is the critical t-value?
A)+2.132
B)±2.132
C)+2.262
D)±2.228

Question

Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out)or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s)for five products with the LIFO and FIFO methods. To analyze the difference,they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method.  If you use the 5% level of significance,what is the critical t-value?
A)+2.132 
B)±2.132 
C)+2.262 
D)±2.228

Quizplus · Accepted Answer

The Answer of Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out)or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s)for five products with the LIFO and FIFO methods. To analyze the difference,they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method.  If you use the 5% level of significance,what is the critical t-value?
A)+2.132 
B)±2.132 
C)+2.262 
D)±2.228

Accounting Procedures Allow a Business to Evaluate Their Inventory Costs