Which of the following statements is true of process costing?
A) In the period of rising prices, weighted-average process-costing method will result in higher operating income as compared to FIFO process-costing method.
B) The operating income and the income tax liability of a company are not affected by the method of process-costing being followed by the company.
C) In the period of rising prices, weighted-average process-costing method will result in lower cost of goods sold as compared to FIFO process-costing method.
D) In a period of falling prices, weighted-average process-costing method will result in a higher income tax liability as compared to FIFO process-costing method.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true of process costing?
A) In the period of rising prices, weighted-average process-costing method will result in higher operating income as compared to FIFO process-costing method.
B) The operating income and the income tax liability of a company are not affected by the method of process-costing being followed by the company.
C) In the period of rising prices, weighted-average process-costing method will result in lower cost of goods sold as compared to FIFO process-costing method.
D) In a period of falling prices, weighted-average process-costing method will result in a higher income tax liability as compared to FIFO process-costing method.

Which of the Following Statements Is True of Process Costing