Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 17 - Process Costing - Assignment Material - Questions - Page 696: 17-10

Answer

A major advantage of the FIFO method for planning and control is that it allows managers to evaluate the performance in the current period independently from the performance in the preceding period. This separation enables a clearer assessment of the current period's results and facilitates better decision-making and control.

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