Operating Profit Can Differ Materially Between the Results for the Weighted-Average

question 34

Multiple Choice

Operating profit can differ materially between the results for the weighted-average and FIFO methods when:

• A)direct materials or conversion costs per unit vary significantly from period to period.
• B)the physical inventory levels of work in process are large relative to the total number of units transferred out.
• C)Neither A nor B is correct.
• D)Both A and B are correct.

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