Because the Weighted Average and FIFO Methods Treat Beginning Inventory

question 68

Multiple Choice

Because the weighted average and FIFO methods treat beginning inventory differently, if a firm has beginning inventory in a process costing system and the FIFO method is used, it will:

• A) Always have a higher number of equivalent units of production for conversion costs than weighted the average method
• B) Always have a lower number of equivalent units of production for conversion costs than the weighted average method
• C) Always have a higher cost per equivalent unit than the weighted average method for materials
• D) Always have a lower cost per equivalent unit than the weighted average method for conversion costs

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Definitions:

Behaviorally Anchored Rating Scale

A method used in performance appraisal that links specific behavioral patterns with specific performance ratings to ensure objectivity and fairness.

Behavioral Observation Scale

A systematic method for assessing job performance based on directly observing and recording an employee’s behavior in the workplace.

Critical Incidents

Specific situations or events that significantly impact operations or personnel, often used in performance assessments and training.

Distributional Error

A distributional error occurs when the rater tends to use only one part of the rating scale.