In process costing system, the average costing method assumes that cost flows do follow the logical physical flow of production.

Name: In process costing system, the average costing method assumes that cost flows do follow the logical physical flow of production.
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The average costing method, also known as the weighted average method, does not assume that cost flows follow the physical flow of production. Instead, it averages out costs over all units, regardless of when they were produced.

In Process Costing System, the Average Costing Method Assumes That