Two different accounting procedures that are utilized bybusinesses as a way to e

Two different accounting procedures that are utilized bybusinesses as a way to evaluate their inventory are LIFO (Last InFirst Out) and FIFO (First In First Out). ABC manufacturerevaluated its finished goods inventory (in $ thousands) for fiveproducts using both procedures. Based on the following results isLIFO more effective in keeping the value of his inventorylower? Product FIFO (F)LIFO (L)1 225 2212 119 1003 100 1134 212 2005 248 245The 5% level of significance was selected for the t value. Thecalculated test statistic was 1.93. What is the decision?A. Reject the null hypothesis and conclude LIFO is moreeffective. B. Fail to reject the null hypothesisand conclude LIFO is not more effective.C. Reject the alternate hypothesis and conclude LIFO ismore effective. D. Fail to reject the nullhypothesis and conclude LIFO is more effective.