Which product costing system distributes costs evenly across total production?
A) Process cost system
B) Job order cost system
C) Standard cost system
D) Variable cost system

Question

Quizplus · Accepted Answer

Process costing systems allocate costs evenly to homogeneous products.Companies that use process costing systems normally make products in mass quantities using continuous processes.The per-unit product cost is determined by dividing the total product cost by the number of units produced during the accounting period.Process costing systems provide average product costs.

Which Product Costing System Distributes Costs Evenly Across Total Production