Process costing accumulates costs for a period and divides them by quantities produced during the period to get average costs.

Question

Quizplus · Accepted Answer

Process costing is a method of costing used in manufacturing industries where a continuous production process is involved, and the costs can be accumulated for a particular period and then divided by the number of units produced during that period to get average costs. This allows businesses to determine the cost per unit and make informed pricing and production decisions.

Process Costing Accumulates Costs for a Period and Divides Them