For which process costing method is simplicity the main advantage?
A) actual cost method
B) FIFO costing method
C) LIFO costing method
D) weighted average costing method

Question

Quizplus · Accepted Answer

The weighted average costing method is the simplest process costing method, as it involves calculating the average cost of all units based on total costs incurred and the total number of units produced. This method does not require as much detailed tracking of specific costs as the other methods, making it a more convenient choice for many businesses. The other methods listed (actual cost, FIFO, and LIFO) all involve more complicated calculations and tracking of specific costs.

For Which Process Costing Method Is Simplicity the Main Advantage