A Distinct Feature of the FIFO Process-Costing Method Is That

question 139

Multiple Choice

A distinct feature of the FIFO process-costing method is that the ________.

• A) work done on beginning inventory before the current period is blended with the work done during the current period in the calculation of equivalent units
• B) work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units
• C) work done on ending inventory is kept separate from the work done during the current period in the calculation of equivalent units and is usually not included in the calculation
• D) FIFO process-costing method is only minimally different from the weighted-average process-costing method

---

Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower fails to repay the agreed amount.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Net Worth

The value of all assets a person or corporation owns, minus the liabilities they owe; a measure of financial health.

Liabilities

A debt owed by a business to another organization or individual.