Because the predetermined rates in process costing come from company budgets, we refer to these rates as budgeted rates and to the system as a budgeted costing system.

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Quizplus · Accepted Answer

Process costing often uses predetermined overhead rates based on estimated costs and activity levels, but this does not make it a "budgeted costing system." The term "budgeted costing system" is not a standard term in cost accounting; process costing is a method used to allocate costs in manufacturing environments where products are indistinguishable from each other.

Because the Predetermined Rates in Process Costing Come from Company