In process costing, it is assumed that products physically move through the process on a FIFO basis.

Name: In process costing, it is assumed that products physically move through the process on a FIFO basis.
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

In process costing, the FIFO (first-in, first-out) assumption is used to assign costs to units produced. This means that the costs incurred in the first period are assigned to the first units produced, the costs incurred in the second period are assigned to the second units produced, and so on.

In Process Costing, It Is Assumed That Products Physically Move