For Which Process Costing Method Is Simplicity the Main Advantage

question 51

Multiple Choice

For which process costing method is simplicity the main advantage?

• A) actual cost method
• B) FIFO costing method
• C) LIFO costing method
• D) weighted average costing method

---

Definitions:

Marginal Product of Labor

The additional output produced as a result of employing one more unit of labor, holding other inputs constant.

Equilibrium Outcome

This term describes a state in a market or game where all participants' actions are balanced, and no incentive exists to deviate from the chosen strategy.

Monopoly Wage Rate

The wage setting behavior of a monopolist employer who might set wages below competitive levels due to lack of competition in the labor market.

Competitive Wage Rate

The equilibrium wage set in a market where the demand for labor meets the supply, with no individual employer able to influence the wage rate.