Question

3.
Process cost method is especially suitable for
(a)Custom production
(c) FIFO
(b) Standard costs
(d) LIFO​

Answer 1

It is suitable for FIFO.

• The term FiFO stands for first-in-first-out.
• Under the FIFO technique there is a  transfer of expenses to the next department and then to completed items in the sequence in which they entered the present department.
• The price method is where when one or more tasks are used to mass-produce units on a continual basis. in FIFO the expenses which are initial are transferred first, thus the method is suitable.