The FIFO Method of Process Costing Accounts for Cost Flow

question 98

Short Answer

The FIFO method of process costing accounts for cost flow in a ______________ manner.

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Definitions:

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or agency.

Liability

A legal responsibility or obligation, typically referring to the duty to compensate for harm or loss caused to another party.

Agent

An individual or entity authorized to act on behalf of another person or entity, typically in business transactions, creating a legal relationship called agency.

Independent Contractor

A person or entity contracted to perform work for—or provide services to—another entity as a non-employee, which means they have greater autonomy in how they complete their work.