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

question 65

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)All of these answers are correct.

---

Definitions:

Mystery Shoppers

Individuals employed covertly to evaluate customer service, product quality, and the overall environment of retail or service outlets.

Performance Appraisal

An evaluation of an employee's job performance against pre-established criteria.

Departmental Stores

Large retail establishments that offer a wide variety of goods and services divided into departments for efficient shopping and organization.

Forced Distribution

A performance management system where employees are ranked in groups and a certain percentage must fall into each group.