An Assumption of the FIFO Process-Costing Method Is That

question 90

Multiple Choice

An assumption of the FIFO process-costing method is that:

• A)the units in beginning inventory are assumed to be completed first.
• B)the units in beginning inventory are not necessarily assumed to be completed by the end of the period.
• 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:

Equal To Zero

A state or condition where a value, quantity, or balance is zero.

Price-Elasticity Coefficient

A measure showing the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.

Midpoint Formula

A method used to calculate the elasticity of demand or supply by dividing the percentage change in quantity demanded or supplied by the percentage change in price, using the average of the initial and final values.