From the standpoint of cost control, the weighted-average method of process costing is superior to the FIFO method.

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Quizplus · Accepted Answer

The statement is false. The FIFO method is actually considered superior to the weighted-average method in terms of cost control because it assigns costs to units that are actually completed and transferred out first, rather than averaging costs across all units in a process. Therefore, option 4 instructs to compute costs per equivalent unit by the weighted-average method, and option 6 (Appendix 4A) instructs to compute equivalent units by the FIFO method.

From the Standpoint of Cost Control, the Weighted-Average Method of Process