Simplicity Is the Main Advantage of Which of the Following

question 42

Multiple Choice

Simplicity is the main advantage of which of the following process costing methods?

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

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Definitions:

Finished Goods Inventory

The stock of completed products ready for sale at the end of an accounting period.

Raw Materials

Raw materials are the basic materials from which products are manufactured or made, often used in the initial stages of the production process.

Factory Overhead

Every manufacturing-related expense, apart from direct labor and materials.

Debit Balance

A situation in accounting where the sum of debits exceeds the sum of credits, often indicating expenses or assets.