A major advantage of using the FIFO

processminus$$costing

method is$$ that:

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Part $1$

A$.$

in the period of rising$$ prices, it leads to lower operating income and lower tax$$ payments, saving the company cash and increasing the$$ company's value

B$.$

FIFO provides managers with information about changes in the costs per unit from one period to the next

C$.$

in contrast with the

weightedminus$$average

$$method$,$ FIFO is considered GAAP

D$.$

FIFO makes the unit cost calculations simpler