Which of the Following Statements Is Most Accurate

question 120

Multiple Choice

Which of the following statements is most accurate?

• A) In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials.
• B) The weighted average method uses the stage of completion of the current period's beginning goods in process inventory account in calculating equivalent units.
• C) The weighted average method focuses on the total costs and total equivalent units completed to date; this is the major difference between the weighted average method and the FIFO method of calculating equivalent units of production.
• D) The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period.
• E) It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

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Definitions:

Total Variable Costs

The sum of expenses that change in proportion to the activity of a business, such as costs for raw materials and labor, which vary with production volume.

Firm Produces

The process by which a business combines inputs, such as labor and capital, to create outputs, or goods and services, for consumption.

Marginal Cost

The cost associated with producing one more unit of a specific good or service, key in decision-making processes for production levels.

Marijuana

Marijuana, also known as cannabis, is a psychoactive drug from the Cannabis plant used for medical or recreational purposes.