Process costing assigns costs to cost pools and allocates the costs to individual units in a two stage process.

Question

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Process costing accumulates costs in cost pools for each production process or department and then allocates these costs to individual units produced, typically through a two-stage process involving the assignment of costs to processes and then the allocation of these costs to the units produced by those processes.

Process Costing Assigns Costs to Cost Pools and Allocates the Costs