In process costing,
A)accounting focuses on the process involved in manufacturing products that are very unique in nature.
B)the system is used to apply costs to merchandise inventory.
C)costs are summarized in a product cost report by department.
D)total costs are determinable at any point in time by examining the account balances.

Question

Quizplus · Accepted Answer

Process costing is a method of assigning costs to a product based on the processes involved in its production. The costs are accumulated and summarized in a product cost report by department, making option C the correct answer. Options A and B do not accurately describe process costing. Option D is partially correct, as the account balances can provide some information about total costs, but it is not the primary method used in process costing.

In Process Costing