Which of the following statements about operation costing is (are) true?
I. Conversion costs are accumulated by department.
II. Direct material costs are accumulated by batch.
III. Operation costing is a hybrid product-costing system.
A) I only.
B) I and II only.
C) I and III only.
D) II and III only.
E) I, II, and III.

Question

Quizplus · Accepted Answer

Operation costing is a hybrid system that combines elements of both job-order and process costing. Conversion costs are accumulated by department, and direct material costs are accumulated by batch, making all three statements true.

Which of the Following Statements About Operation Costing Is (Are)