Generally Accepted Accounting Principles (GAAP)mandates the type of product costing system (job costing or process costing)that must be used by a manufacturer.

Question

Quizplus · Accepted Answer

GAAP does not mandate the type of product costing system to be used by a manufacturer. The choice of costing system is left to the discretion of management and should be based on the nature of the business and the types of products being produced. However, GAAP does provide guidance on how costs should be allocated and accounted for within the chosen costing system.

Generally Accepted Accounting Principles (GAAP)mandates the Type of Product Costing