A Disadvantage of the Weighted-Average Method Compared to the FIFO

question 71

Multiple Choice

A disadvantage of the weighted-average method compared to the FIFO process-costing method is that:

• A)FIFO provides better management information for planning and control purposes.
• B)FIFO is computationally simpler.
• C)the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO.
• D)when unit cost per input prices fluctuate markedly from month to month,its per unit cost is less representative than FIFO.

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Definitions:

Hyperemesis

Excessive vomiting that can lead to dehydration and weight loss, often seen in early pregnancy.

Hypoplasia

A condition where an organ or tissue is underdeveloped or incomplete at birth.

Slow

Characterized by a reduced speed or rate of movement, action, or progress.

Latent

Something that is present but not visible, apparent, or actualized; existing as potential.