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A Disadvantage of the Weighted-Average Method Compared to the FIFO

Question 71

Multiple Choice

A disadvantage of the weighted-average method compared to the FIFO process-costing method is that:


A) FIFO provides better management information for planning and control purposes.
B) FIFO is computationally simpler.
C) the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO.
D) when unit cost per input prices fluctuate markedly from month to month,its per unit cost is less representative than FIFO.

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