Which of the Following Statements Is(are) True

question 81

Multiple Choice

Which of the following statements is(are) true?
I. For cost control, the FIFO method of process costing is better than the weighted-average method.
II. The weighted-average method of process costing assigns more cost to units completed (transferred out) than the FIFO method.

• A) Only I is true.
• B) Only II is true.
• C) Both of these are true.
• D) Neither of these is true.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Numerical Representations

The process or method of representing numbers through symbols or figures.

Income Statement

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing its financial performance.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.