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

Question

Quizplus · Accepted Answer

GAAP does not mandate the type of product costing system to be used by a manufacturer for external reporting. However, it does require manufacturers to disclose the costing method used and provide sufficient detail to enable users to understand the cost information presented.

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