On Occasion,the FIFO and the Weighted-Average Methods of Process Costing

question 131

Multiple Choice

On occasion,the FIFO and the weighted-average methods of process costing will result in the same dollar amount of costs being transferred to the next department.Which of the following scenarios would have that result?

• A) when the beginning and ending inventories are equal in terms of unit numbers
• B) when the beginning and ending inventories are equal in terms of the percentage of completion for both direct materials, and conversion costs
• C) when there is no ending inventory
• D) when there is no beginning inventory

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Definitions:

Product-line Pricing

A marketing strategy that involves setting different prices for various items in a product line based on their features, costs, or market demand.

Customary Price

Customary price refers to the price that consumers expect to pay for a product or service, based on historical pricing, market standards, or common practice within a specific industry or region.

Specific Pricing Points

Pricing strategies where goods or services are sold at predetermined prices aimed at attracting certain segments of customers or fitting within certain budgets.

Incremental Revenue

The additional income generated from a new business activity or strategy, beyond the existing baseline revenue.