Which of the Following Statements Is Correct with Respect to the Differences

Which of the following statements is correct with respect to the differences between using the weighted-average method or the FIFO method of preparing a process production report?

A) Use of FIFO is acceptable for GAAP,while use of weighted-average method is not.
B) FIFO is simpler to use than the weighted-average method.
C) Use of FIFO or weighted-average results in large differences for companies that maintain minimal work-in-process inventory.
D) The weighted-average method is often simpler,less costly to prepare,and provides useful information for decision-making.

Correct Answer:

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