Managerial Accounting

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Advantages of Weighted Average Costing

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One reason that weighted-average costing may be preferred over FIFO costing in process costing systems is because

A

over the course of a year, it smooths out costs when input costs fluctuate markedly from month to month.

B

it shows the same cost per unit than FIFO with fewer computations.

C

it computes the cost per unit for all the work done to date, not just completed units.

D

over the course of a year, it smooths out costs as long as input costs do not fluctuate markedly from month to month.