Which of the following factors influences management's approach to process costing?
A) The degree to which products are identical in their consumption of direct materials
B) The existence of work in process inventory at the end of the accounting period
C) The degree to which products are identical in their specific production processes
D) All of the given answers

Question

Quizplus · Accepted Answer

Management's approach to process costing is influenced by all of the given factors. The degree to which products are identical in their consumption of direct materials and specific production processes affect the allocation of costs to each unit of output using the weighted average or first-in, first-out methods. The existence of work in process inventory at the end of the accounting period affects the calculation of equivalent units and the allocation of costs between work in process and finished goods inventory.

Which of the Following Factors Influences Management's Approach to Process