Which of the following is not correct about process costing and job order costing?
A)Both the system classify materials as direct material and or indirect materials.
B)Both the system classify labor ans direct labor and or indirect labor
C)Direct materials under job order costing might be indirect under process costing and vice versa.
D)Both the systems assigns costs by process.

Question

Quizplus · Accepted Answer

Process costing assigns costs by process or department for homogeneous products, while job order costing assigns costs to individual jobs or batches, making choice D incorrect as it suggests both systems assign costs in the same manner.

Which of the Following Is Not Correct About Process Costing