Product costing in a manufacturing firm is the process of:
A) accumulating the company's period costs.
B) allocating costs among the firm's departments.
C) placing a value on the company's fixed assets.
D) assigning costs to the firm's inventory.
E) assigning costs to the company's managers.

Question

Quizplus · Accepted Answer

Product costing in a manufacturing firm involves assigning costs to the firm's inventory, which includes the direct materials, direct labor, and manufacturing overhead costs associated with producing the company's products. This is done to determine the cost of goods sold and the value of the firm's ending inventory. Options A, B, C, and E do not accurately describe the process of product costing in a manufacturing firm.

Product Costing in a Manufacturing Firm Is the Process Of