The appropriate cost accounting system to use when inventory items are produced on an assembly line is
A)weighted average.
B)job-order costing.
C)process costing.
D)perpetual method.

Question

Quizplus · Accepted Answer

Process costing is used when inventory items are produced on an assembly line as it allows for the tracking of costs for each step in the manufacturing process. This method is better suited for mass production settings with identical or similar products. A weighted average method may not be appropriate as it calculates an average cost across multiple batches or products, while job-order costing is more appropriate for customized or unique products. The perpetual method refers to the continuous tracking of inventory levels rather than a specific costing method.

The Appropriate Cost Accounting System to Use When Inventory Items