Materials labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for
A)A job order costing system
B)An activity based costing system
C)A process costing system
D)A variable costing system

Question

Quizplus · Accepted Answer

In a process costing system, costs are traced to processing departments rather than individual products or jobs. This method is typically used in industries where the products are more homogeneous, such as manufacturing of chemicals, food, or petroleum products.

Materials Labor and Overhead Costs Are Traced to Processing Departments