Which of the Following Is True of the First-In, First-Out

question 157

Multiple Choice

Which of the following is true of the first-in, first-out costing method?

• A)It calculates the equivalent units of output at the beginning of a reporting period.
• B)It includes only prior-period work in determining the completed units of output.
• C)It uses only current output to calculate the current-period unit cost.
• D)It treats the work in beginning work-in-process as belonging to the current period.

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Definitions:

Supply Function

A mathematical relation showing the quantity of a good that producers are willing and able to sell at different prices, holding other factors constant.

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital.

Production Function

A mathematical model that describes the relationship between input factors of production (like labor and capital) and the output of goods or services that result.

Factor Prices

The prices of inputs used in the production of goods or services, such as labor wages, rent for land, and profit for capital.