Under the FIFO Method,cost Per Equivalent Unit Is Calculated by Dividing

question 95

True/False

Under the FIFO method,cost per equivalent unit is calculated by dividing current period costs by equivalent units.This is the formula for cost per equivalent unit under the FIFO method.

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Definitions:

Favorable

A term used in budgeting and finance to indicate results that are better than expected, such as lower costs or higher revenues.

Unfavorable

A term used to describe outcomes or variances that negatively impact financial performance or expectations.

Unfavorable Variances

Occurrences when actual costs exceed budgeted or expected costs, indicating a potential need for management action to address inefficiencies.

Favorable Variances

Differences between actual and budgeted amounts that result in more profit or less cost than originally planned.