The correct answer is: A. weighted average method
The weighted average method is a costing method that calculates the per equivalent unit cost of all production related work done till calculate date. It does this by taking the weighted average of the costs of the units started and completed during the period, and the costs of the units in ending work in process.
The weighted average method is a simple and easy to use method, and it is often used by companies that produce a variety of products. However, it can be less accurate than other costing methods, such as the first-in, first-out (FIFO) method.
The net present value (NPV) method is a capital budgeting method that calculates the present value of a project’s future cash flows. It is a more accurate method than the weighted average method, but it is also more complex.
The gross production method is a costing method that calculates the cost of goods manufactured by adding the cost of direct materials, direct labor, and factory overhead to the beginning inventory of work in process. It is a simple and easy to use method, but it is not as accurate as other costing methods.
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