A Reason(s)why 'Pure' FIFO Is Rarely Encountered in Process Costing

question 157

Multiple Choice

A reason(s) why 'pure' FIFO is rarely encountered in process costing is that:

• A)the units transferred into the department during a given time period are usually carried at a single average unit cost.
• B)FIFO is usually applied within a department to compute the cost of units transferred out.
• C)tracking costs on a 'pure' FIFO basis is very difficult.
• D)All of these answers are correct.

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