Asked by ethan battista on Apr 29, 2024
Verified
Companies that use the weighted average method for process costing have unit costs that include costs from more than one accounting period.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale during the period.
Unit Costs
The amount of expenditure incurred to create a single unit of a product or service.
- Identify the distinctions between different costing approaches (FIFO, weighted average) and how they influence cost statements.
Verified Answer
TB
talal bagherMay 01, 2024
Final Answer :
True
Explanation :
The weighted average method combines costs from the current and previous periods to calculate the average cost per unit, thus including costs from more than one accounting period.
Learning Objectives
- Identify the distinctions between different costing approaches (FIFO, weighted average) and how they influence cost statements.