An operations costing system is:

A. identical to a process costing system except that actual cost is used for manufacturing overhead.

B. the same as a process costing system except that materials are allocated on the basis of batches of production.

C. the same as a job order costing system except that materials are accounted for in the same way as they are in a process costing system.

D. the same as a job order costing system except that no overhead allocations are made since actual costs are used throughout.

Question

Business

Gibson

26 May, 11:57

An operations costing system is:

A. identical to a process costing system except that actual cost is used for manufacturing overhead.

B. the same as a process costing system except that materials are allocated on the basis of batches of production.

C. the same as a job order costing system except that materials are accounted for in the same way as they are in a process costing system.

D. the same as a job order costing system except that no overhead allocations are made since actual costs are used throughout.

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Answers (1)

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Plato · Answer 1

C. An operations costing system is the same as job order costing system except that materials are accounted for in the same way as they are in process costing system

Explanation:

Operation costing is a hybrid of both job costing and process costing which can either used for:

products which use different materials initially but ends up using a common process for production that is same process for different group of products. product has identical processing initially for different group of products and ends up with more product specific procedures.