Statistics and Probability

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Accounting Procedures of LIFO and FIFO


Accounting procedures allow a business to evaluate their inventory using LIFO ( Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory for five products both ways. This means that the inventory of each product was evaluated using LIFO and FIFO.

The manufacturer would like to know which method, LIFO or FIFO is more effective in keeping the value of its inventory lower.

What type test of comparing two populations is this example?


An example of two dependent samples.


An example of two independent samples.


An example of testing two proportions.


An example of F-test.