Which of the Following Is True of Weighted-Average Process-Costing

question 12

Multiple Choice

Which of the following is true of weighted-average process-costing?

• A) It does not represent the average cost of units when inputs prices fluctuates markedly from month to month.
• B) It facilitates period-to-period comparisons and hence is very useful in analyzing the performances of managers for different periods.
• C) It arrives at the same unit costs as arrived under FIFO method, but the computations are easier under weighted-average process-costing.
• D) It calculates the cost per equivalent unit of all work done to date, regardless of the accounting period in which it was done.

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Definitions:

Many

A term indicating a large number of items, people, or entities in a given context.

Crude Quantity Theory

A basic hypothesis regarding the relationship between the quantity of money in an economy and its level of prices.

Constant

A value that remains unchanged throughout the scope of an equation, analysis, or experiment.

PQ

A notation commonly used in economics to represent the product of price (P) and quantity (Q), indicating the total revenue.