The flow of costs in a process costing system requires that materials be added in one department labor added in another department and manufacturing overhead in a third department.

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In a process costing system, materials, labor, and manufacturing overhead are typically all added in the same department or production process. The flow of costs refers to how these costs are accumulated and allocated from one process to another, but they are not typically added in separate departments.

The Flow of Costs in a Process Costing System Requires