The two major steps in the flow of costs are
A) allocating and assigning.
B) acquiring and accumulating.
C) accumulating and assigning.
D) accumulating and amortizing.

Question

Quizplus · Accepted Answer

The two major steps in the flow of costs are accumulating and assigning. Accumulating costs involves gathering and recording all relevant costs incurred in the production process. Assigning costs involves allocating those costs to the appropriate products or services. Acquiring and amortizing costs are also important steps in the overall accounting process, but they are not the two major steps in the flow of costs.

The Two Major Steps in the Flow of Costs Are