Question
1. 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?
Product FIFO (F) FIFO(L)
1 225 221
2 119 100
3 100 113
4 212 200
5 248 245
This example is what type of test?
Answer
One sample test of means.
Two sample test of means.
Paired t-test.
Test of proportions.
2. 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?
Product FIFO (F) FIFO(L)
1 225 221
2 119 100
3 100 113
4 212 200
5 248 245
What is the value of calculated t?
Answer
+0.93
±2.776
+0.47
-2.028
None of these.