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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).

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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. Based on the following results, does the LIFO method result in a lower cost of inventory than the FIFO method? Product FIFO (F) LIFO (L) 225 221 119 100 UI A W N - 100 113 212 200 248 245 This example is what type of test? O A two-sample test of means O A paired t-test O A test of proportions O A one-sample test of means

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