the product moves from department to department before being completed. the unit cost of production is computed by dividing the total production costs by the number of units produced. Question 7. Question:( TCO B) The FIFO method only provides a major advantage over the weighted-average method in that Student Answer: the calculation of equivalent units is less complex under the FIFO method. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. the FIFO method provides measurements of work done during the current period. the weighted-average method ignores units in the beginning and ending work-in-process inventories. Question 8. Question:( TCO C) The contribution margin ratio always increases when the Student Answer: fixed expenses increase. fixed expenses decrease. variable expenses as a percentage of net sales increase. variable expenses as a percentage of net sales decrease. Question 9. Question:( TCO C) Which of the following would not affect the break-even point? Student Answer: Variable expense per unit Number of units sold Total fixed expenses Selling price per unit Question 10. Question:( TCO D) Under variable costing, Student Answer: inventory costs will be lower than under absorption costing. inventory costs will be higher than under absorption costing. net operating income will always be lower than under absorption costing. net operating income will always be higher than under absorption costing.