The first step of the 5-step process costing procedure is:
A)compute output in terms of equivalent units.
B)summarize total costs to account for.
C)compute the cost per equivalent unit.
D)summarize the flow of physical units.

Question

Quizplus · Accepted Answer

The first step of the 5-step process costing procedure is to summarize the flow of physical units, which involves analyzing the inputs and outputs of each production department. This step is important in determining the number of units that are partially complete, completed, or not yet started, which will be used in subsequent steps to determine the cost per unit.

The First Step of the 5-Step Process Costing Procedure Is