Which of the Following Statements Is True of Process Costing

question 56

Multiple Choice

Which of the following statements is true of process costing?

• A) In the period of rising prices, weighted-average process-costing method will result in higher operating income as compared to FIFO process-costing method.
• B) The operating income and the income tax liability of a company are not affected by the method of process-costing being followed by the company.
• C) In the period of rising prices, weighted-average process-costing method will result in lower cost of goods sold as compared to FIFO process-costing method.
• D) In a period of falling prices, weighted-average process-costing method will result in a higher income tax liability as compared to FIFO process-costing method.

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Definitions:

Time Delay

Time Delay refers to a deliberate pause introduced into a control system or circuit to delay the activation or deactivation of an operation or signal.

De-energized

A state in which electrical equipment is not connected to a source of power and has no electric charge.

Hardwired Circuit

A physical electrical circuit built through direct connections rather than programmable or software-controlled interfaces.

Coil TD

Time Delay coil in programmable logic controllers or electrical circuits, providing a delay function before enabling an action.