The correct statement concerning process costing is:

Question

Quizplus · Accepted Answer

Process costing uses a cost of production report as a primary control document to track the costs associated with each production process. Option A is incorrect because process costing is used when the type of production is homogeneous, meaning products are similar in nature and produced in large quantities. Option B is incorrect because unlike job costing, process costing does not separate the flow of products by jobs, but rather assigns costs to each process or department. Option D is also incorrect because record keeping in process costing is less detailed than in job costing since the focus is on tracking costs by processes rather than tracking costs by individual jobs or orders.

The Correct Statement Concerning Process Costing Is