A Major Advantage of Using the FIFO Process-Costing Method Is

question 61

Multiple Choice

A major advantage of using the FIFO process-costing method is that:

• A) FIFO makes the unit cost calculations simpler
• B) in contrast with the weighted-average method, FIFO is considered GAAP
• C) FIFO provides managers with information about changes in the costs per unit from one period to the next
• D) in the period of rising prices, it leads to lower operating income and lower tax payments, saving the company cash and increasing the company's value