_______________ is a unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs.

Question

Quizplus · Accepted Answer

The FIFO (first-in, first-out) costing method assumes that the first units to enter the production process are the first units to be completed and sold. Therefore, when calculating unit costs for the current period, only the costs incurred during that period are included, and costs from prior periods are excluded. This method is useful when there are significant changes in input prices or production processes, as it more accurately reflects the current cost of production.

_______________ Is a Unit-Costing Method That Excludes Prior-Period Work and Costs