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In: Statistics and Probability

Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (Last...

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 thousands) 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?

Product FIFO LIFO
1 225 221
2 119 100
3 100 113
4 212 200
5 248 245


What is the decision at the 5% level of significance?

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Answer: ---- Date: ----24/04/2019

orchestra answered 2 years ago
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