The FIFO Method Is a More Accurate Method Than Weighted

question 61

Multiple Choice

The FIFO method is a more accurate method than weighted average because:

• A) it does not require the calculation of equivalent units.
• B) the costs of current period are not combined with the costs of the prior period.
• C) it considers prior period costs during the current period.
• D) it must be computerised in order to obtain accurate calculations.

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Definitions:

Aggressive Optimism

A mindset or attitude where an individual or organization has high expectations and confidence, often pushing boundaries and taking bold actions.

External Funding

Financial support that comes from outside an organization, including loans, grants, investments, and other forms of financing.

Forecasted Growth

The expected rate at which a company, sector, or the economy as a whole is anticipated to grow over a specific period.

Retained Earnings

The portion of net income that is retained by a corporation rather than distributed to its shareholders as dividends.