The FIFO method of process costing assigns costs to units assuming a first-in,first-out flow of product.

Name: The FIFO method of process costing assigns costs to units assuming a first-in,first-out flow of product.
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Quizplus · Accepted Answer

The FIFO method of process costing assumes that the first units to enter the production process are the first units to be completed and sold. Therefore, the costs associated with these units are assigned first before moving on to the costs of subsequently produced units.

The FIFO Method of Process Costing Assigns Costs to Units