Use the Information Below to Answer the Following Question(s)

question 78

Multiple Choice

Use the information below to answer the following question(s) .Canadian Oil Company manufactures cooking oils.All direct materials are added at the beginning of the production process.The company currently uses the FIFO method.Data for the month of July is listed below.
-Unit costs of the weighted-average and FIFO methods will differ significantly when

• A)direct materials or conversion costs per unit vary little from period to period.
• B)physical inventory levels of work-in-process are small in relation to the number of units transferred out.
• C)direct materials or conversion cost per unit vary greatly and physical inventory levels of work-in-process are large relative to the number of units transferred out.
• D)conversion costs per unit vary greatly and physical inventory levels of work-in-process are small relative to the number of units transferred out.
• E)direct materials or conversion costs per unit are similar and physical inventory of work-in-process are small relative to the number of units transferred in.

---

Definitions:

Variance

A measure of the dispersion representing the average of the squared differences from the mean.

Observation

An act of noting and recording something, typically used in the context of data collection in scientific studies or research.

Errors

The differences between observed values and the values predicted by a model, showcasing the discrepancies that can arise in data analysis.

Normally Distributed

Normally distributed refers to a dataset that follows a Gaussian distribution, where data tends to cluster around a central mean with a predictable spread.