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. Based on the following results, does the LIFO method result in a lower cost of inventory than the FIFO method? What is the null hypothesis? A)H₀: µ_d = 0 B)H₀: µ_d ≠ 0 C)H₀: µ_d ≤ 0 D)H₀: µ_d ≥ 0

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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. Based on the following results, does the LIFO method result in a lower cost of inventory than the FIFO method? What is the null hypothesis? A)H₀: µ_d = 0 B)H₀: µ_d ≠ 0 C)H₀: µ_d ≤ 0 D)H₀: µ_d ≥ 0

Accounting Procedures Allow a Business to Evaluate Their Inventory Costs