The four-steps of tracking product costs in a process costing system are ________.
A) verify, analyze, record, and adjust
B) assign, analyze, approximate, and allocate
C) accumulate, assign, allocate, and adjust
D) arrive, analyze, assume, and allocate

Question

Quizplus · Accepted Answer

The four-step process for tracking product costs in a process costing system are accumulate (collect data), assign (assign costs to products or departments), allocate (distribute costs in proportion to the amounts assigned), and adjust (make any necessary adjustments to the cost calculations). Option C includes these four steps in the correct order. Option A includes verify and analyze, which aren't necessarily distinct steps in the process, and option B includes approximate, which is not a necessary step in the process. Option D includes assume, which is not a reliable or accurate way to track product costs.

The Four-Steps of Tracking Product Costs in a Process Costing