Which of the following statements about operation costing is true?
i. Conversion costs are accumulated by department.
ii. Direct material costs are accumulated by batch.
iii. It is a hybrid product costing system.
A) i, ii and iii
B) ii and iii
C) i and iii
D) i and ii

Question

Quizplus · Accepted Answer

Operation costing is indeed a hybrid product costing system that combines features of both job costing and process costing. In operation costing, conversion costs are accumulated by department (similar to process costing), and direct material costs are typically accumulated by batch (similar to job costing), making all three statements correct.

Which of the Following Statements About Operation Costing Is True