Which Two Methods Are Used to Determine Equivalent Units of Production

question 23

Multiple Choice

Which two methods are used to determine equivalent units of production in process costing?

• A) exact costing and LIFO costing method
• B) FIFO costing method and LIFO costing method
• C) weighted average costing method and exact costing
• D) weighted average costing method and FIFO costing method

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or activity, remaining constant regardless of production volume.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.

Price Falls

A decrease in the market price of goods or services, often due to increased supply, decreased demand, or external economic factors.