The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Group of answer choices Requires that ending work in process inventory be stated in terms of equivalent units of production. b. Can be used under any cost-flow assumption. c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. d. Considers the ending work in process inventory only partially complete.

An average cost method of process costing differs from the FIFO method of process costing because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

The average method Equivalent units of Production include

The FIFO method Equivalent units of Production include

The FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.

Hence, the average cost method differs because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

Therefore, the Option C is correct.

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c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

Explanation:

The average cost method of process costing  differs from the FIFO method of process costing in that it does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

The average method Equivalent units of Production include goods transferred out and ending inventory  whereas FIFO method Equivalent units of Production include goods transferred out ,ending inventory and beginning inventories as well.

FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.

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