If a Company Uses Average Costing Instead of FIFO, It

question 101

True/False

If a company uses average costing instead of FIFO, it will still get the same unit costs.

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Definitions:

Eccentric Runout

Variation in the rotational path of a rotating part, causing uneven movement or vibration.

Backlash

The play or loose movement in mechanical components, particularly in gears, resulting from gaps between parts.

Gear Teeth

The individual protrusions on the circumference of a gear that engage with those on another gear to transmit torque and motion.

Runout

A defect that causes side-to-side or lateral movement in a spinning object. In wheels it is commonly caused by imperfections in the wheel’s shape; in disc brakes it can be caused by a distorted rotor, hub flange distortion, or worn wheel bearings.