Process costing:
A)allocates conversion costs.
B)results in different costs for different jobs.
C)is commonly used by general contractors who construct custom-built homes.
D)assigns costs to unique jobs based on a overhead cost driver.

Question

Quizplus · Accepted Answer

Process costing allocates conversion costs, which are the costs incurred to convert raw materials into finished goods. This method is used in industries where large quantities of homogeneous products are produced, such as chemicals, food, and pharmaceuticals, where it is not practical to identify costs for individual products or jobs.

Process Costing