Accounting procedures allow a business to evaluate its 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. What is the value of calculated t?
A)+0.933
B)±2.776
C)+0.47
D)−2.028

Question

Accounting procedures allow a business to evaluate its 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.  What is the value of calculated t?
A)+0.933 
B)±2.776 
C)+0.47 
D)−2.028

Quizplus · Accepted Answer

The Answer of Accounting procedures allow a business to evaluate its 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.  What is the value of calculated t?
A)+0.933 
B)±2.776 
C)+0.47 
D)−2.028

Accounting Procedures Allow a Business to Evaluate Its Inventory Costs