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

---

Definitions:

Short-Run Profits

Profits earned by a firm in a period where at least one factor of production is fixed.

Perfectly Competitive

Refers to a market structure where many firms sell an identical product, and no single firm can influence the market price due to its small market share.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.