Correct Answer:
D. Combines the cost of opening WIP with current period costs
Weighted average pools opening WIP cost and current cost to compute the average cost per equivalent unit.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
In process costing, the weighted average method:
Related MCQs
IPSAS (International Public Sector Accounting Standards) are issued by:
A.
International Accounting Standards Board (IASB)
B.
International Monetary Fund (IMF)
C.
International Public Sector Accounting Standards Board (IPSASB)
D.
World Bank
Correct answer is:
C. International Public Sector Accounting Standards Board (IPSASB)
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The statement of financial position (balance sheet) shows:
A.
Income and expenses for a period
B.
Cash flows for a period
C.
Assets, liabilities and equity at a particular date
D.
Changes in equity only
Correct answer is:
C. Assets, liabilities and equity at a particular date
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A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
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Performance-based (results-oriented) budgeting:
A.
Lists expenditure by input only
B.
Links funding to outputs and outcomes
C.
Ignores results
D.
Is prepared after the fiscal year
Correct answer is:
B. Links funding to outputs and outcomes
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The prudence (conservatism) concept suggests that a business should:
A.
Recognize all expected profits in advance
B.
Not overstate assets or income and not understate liabilities or expenses
C.
Ignore all expected losses
D.
Record assets at the highest possible value
Correct answer is:
B. Not overstate assets or income and not understate liabilities or expenses
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When NPV and IRR give conflicting rankings for mutually exclusive projects, the preferred criterion is generally:
A.
NPV
B.
IRR
C.
Payback period
D.
Accounting rate of return
Correct answer is:
A. NPV
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