The First-In, First-Out (FIFO)method Creates Better Month-To-Month Cost Comparisons Than

question 131

Multiple Choice

The first-in, first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method:

• A)as it does not recognize transferred in units from other processes.
• B)when there are substantial quantities of units in process at the end of the period.
• C)because it merges costs from the prior period with the current period.
• D)as it is used by industries that do not experience significant cost changes.

---

Definitions:

Quantity

A specific or measurable amount of something.

Master Of His Offer

The principle that the offeror controls the terms and conditions of an offer until it is accepted.

Offeror

The party in a contract negotiation that makes the initial offer or proposal.

Revoke

The act of officially canceling or withdrawing something, such as a law, right, or privilege.