Tuesday, August 21, 2012

Operating income can differ materially between the results for the weighted-average and FIFO methods when

ACCOUNTING

Multiple Choice

Operating income can differ materially between the results for the weighted-average and FIFO methods when

a. direct materials or conversion costs per unit vary significantly from period to period.

b. the physical inventory levels of work in process are large in relation to the total number of units transferred out.

c. neither (a) nor (b) are correct.

d. both (a) and (b) are correct.

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