The FIFO Costing Method Is a Costing Method in Which

question 113

True/False

The FIFO costing method is a costing method in which the cost flow follows the logical product flow.

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Definitions:

Double-Declining-Balance

A method that determines a depreciation amount for the first year that is approximately twice the straight-line rate.

Scrap Value

The predicted revenue from selling an asset at the conclusion of its serviceable life.

Units-Of-Production Method

A depreciation method that allocates cost based on the actual usage, activity, or units of production of the asset.

Scrap Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.