Which of the following statement/s is/are true?
A) Weighted average costs provide a better basis for cost control than FIFO costs.
B) Weighted average costs provide a better basis for performance evaluation than standard costs.
C) Cost per equivalent unit provides a measure of production efficiency.
D) Weighted average costs provide a better basis for cost control than FIFO costs AND cost per equivalent unit provides a measure of production efficiency.

Question

Quizplus · Accepted Answer

Cost per equivalent unit provides a measure of production efficiency by reflecting the cost incurred in producing a unit of output. Options A and D are incorrect because FIFO costs can also provide a basis for cost control, depending on the specific circumstances of the company. Option B is incorrect as weighted average costs are not necessarily better than standard costs for performance evaluation.

Which of the Following Statement/s Is/are True