Which of the following statements is true of process$-$costing?

Answer

Unselected

The weighted$-$average method results in a more representative average unit cost when input prices fluctuate month to month.

Unselected

The FIFO method merges unit costs from different accounting periods, obscuring period$-$to$-$period comparisons.

Unselected

Costs are relatively easier to compute using the FIFO method as compared to weighted$-$average method.

Unselected

In a period of rising prices, the weighted$-$average method will increase taxes because cost of goods sold will be lower and operating income will be higher.