Under the FIFO cost flow assumption, separate unit cost analyses are not used for each accounting period because costs of different periods are averaged.

Question

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) cost flow assumption, the oldest costs are assigned to the cost of goods sold, and the most recent costs remain in inventory. Separate unit cost analyses are used for each accounting period to reflect the actual flow of costs.

Under the FIFO Cost Flow Assumption, Separate Unit Cost Analyses