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:

Available-for-Sale

A category of securities that are not classified as held-to-maturity or trading securities, and are recorded at fair value.

Unrealized Loss

A loss that occurs on paper due to a decrease in the value of an investment, but has not been realized through a transaction.

Equity Method Investments

Accounting for investments in which the investor has significant influence over the investee, recognizing proportional earnings of the investee.

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves.