The U.S.Department of Agriculture urges the use of process costing together with:
A)Normal costing.
B)Volume-based costing.
C)Activity-based costing.
D)Standard costing.

Question

Quizplus · Accepted Answer

The U.S. Department of Agriculture recommends using process costing together with activity-based costing. This is because process costing is best suited to situations where large volumes of nearly identical products are produced, while activity-based costing provides a more accurate way to allocate costs to specific activities or processes. By combining the two methods, businesses can achieve a more accurate understanding of the costs associated with their production processes. Normal costing, volume-based costing, and standard costing are all useful methods for certain situations, but they are not specifically recommended by the USDA in conjunction with process costing.

The USDepartment of Agriculture Urges the Use of Process Costing Together