Explain the Major Differences Between Weighted-Average Costing and FIFO Costing

question 47

Essay

Explain the major differences between weighted-average costing and FIFO costing.

---

Definitions:

Interest Earned

The income received from investing in financial instruments or depositing money in interest-bearing accounts.

Accrued Interest

Interest earned from the last payment date to the purchase date.

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specified period.

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid.