Which of the Following Statement/s Is/are True

question 63

Multiple Choice

Which of the following statement/s is/are true?

• A) Weighted average costs provide a better basis for cost control than FIFO costs.
• B) Weighted average costs provide a better basis for performance evaluation than standard costs.
• C) Cost per equivalent unit provides a measure of production efficiency.
• D) Weighted average costs provide a better basis for cost control than FIFO costs AND cost per equivalent unit provides a measure of production efficiency.

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Definitions:

Unearned Revenue

Money received by a company for goods or services that have not yet been delivered or performed.

Magazine Subscription

A magazine subscription is an agreement to receive periodic issues of a magazine, usually for a year, in exchange for payment.

Received Payment

Refers to the act of collecting money from a customer as payment for goods or services provided.

Prepaid Expense

Prepayments for products or services that are to be delivered at a later date.