In comparing the FIFO and WA methods for calculating equivalent units. * a. The FIFO method tends to smooth out costs more over time than WA method. b. The weighted average method is more precise than the FIFO method because the WA method is based only on the work completed in the current period. c. The two methods will give similar results even if physical inventory levels and productions costs (materials and conversion costs) fluctuate greatly from period to period. d. The FIFO method is better than the WA method for judging the performance in a period independently from performance in preceding periods.
In comparing the FIFO and WA methods for calculating equivalent units. * a. The FIFO method tends to smooth out costs more over time than WA method. b. The weighted average method is more precise than the FIFO method because the WA method is based only on the work completed in the current period. c. The two methods will give similar results even if physical inventory levels and productions costs (materials and conversion costs) fluctuate greatly from period to period. d. The FIFO method is better than the WA method for judging the performance in a period independently from performance in preceding periods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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In comparing the FIFO and WA methods for calculating equivalent units. *
a. The FIFO method tends to smooth out costs more over time than WA method.
b. The weighted average method is more precise than the FIFO method because the WA method is based only on the work completed in the current period.
c. The two methods will give similar results even if physical inventory levels and productions costs (materials and conversion costs) fluctuate greatly from period to period.
d. The FIFO method is better than the WA method for judging the performance in a period independently from performance in preceding periods.
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