Which of the following statements is true of process costing? A. It tracks and assigns both period costs and product costs to units produced. B. It assigns manufacturing overhead costs to products only in the last production process. C. It uses one Work-in-Process Inventory account. D. It accumulates product costs by production departments.

Question

Business

German Woodard

6 May, 02:43

Which of the following statements is true of process costing? A. It tracks and assigns both period costs and product costs to units produced. B. It assigns manufacturing overhead costs to products only in the last production process. C. It uses one Work-in-Process Inventory account. D. It accumulates product costs by production departments.

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Ava · Answer 1

B) It accumulates product costs by production departments.

Explanation:

Process cost is used to ascertain the cost of a product at all stages of production. Total cost is an addition of all the individual process costs. Usually this is used in companies that produce homogeneous goods.

For example manufacturers for processed foods, and chemicals.