Companies that use the average costing method for process costing have unit costs that include costs from more than one accounting period.

Question

Quizplus · Accepted Answer

The average costing method for process costing calculates unit costs by dividing the total costs of a process by the total number of units produced during that process. Since costs from more than one accounting period can be included in the total costs, unit costs may also include costs from more than one accounting period.

Companies That Use the Average Costing Method for Process Costing