Which type(s) of cost(s) are accumulated, tracked, and assigned to products when a company uses process costing?
A) Direct materials only
B) Direct labor only
C) Direct labor and overhead only
D) Direct materials, direct labor, and overhead

Question

Quizplus · Accepted Answer

Process costing accumulates, tracks, and assigns direct materials, direct labor, and overhead costs to products. This is because process costing is used to assign costs to products that are produced in large quantities, where overhead costs (such as rent, utilities, and depreciation) play a significant role in the total cost of production.

Which Type(s) of Cost(s) Are Accumulated, Tracked, and Assigned to Products