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

Multiple Choice

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

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