An Assumption of the FIFO Process-Costing Method Is That ________

question 94

Multiple Choice

An assumption of the FIFO process-costing method is that ________.

• A) the units in beginning inventory are not necessarily assumed to be completed by the end of the period
• B) the units in beginning inventory are assumed to be completed first
• C) ending inventory will always be completed in the next accounting period
• D) no calculation of conversion costs is possible

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Definitions:

System-2 Thinking

A cognitive processing methodology that involves analytical, conscious, and rational thought, as opposed to intuitive and quick decisions.

System-1 Decision

Fast, automatic, intuitive responses or decisions, as categorized by dual-process theory in cognitive psychology.

Deliberating

The process of thoughtfully considering various aspects or options before making a decision.