Process costing is applicable to production operations that
A)utilize several processes,departments,or work cells in a series.
B)do not assign overhead costs to operations.
C)produce products that are made to order.
D)produce unique products.

Question

Quizplus · Accepted Answer

Process costing is a method of allocating production costs to each unit of output based on the processes involved in producing the product. This method is commonly used in manufacturing operations that involve several processes or work cells in a series. Examples of such operations include oil refineries, chemical plants, and food processing plants. Therefore, the best choice is A. The other options, B, C, and D, are incorrect because process costing requires the allocation of overhead costs, applies to mass-produced products, and cannot be applied to unique products.

Process Costing Is Applicable to Production Operations That