Process costing is not intended to help determine
A)Departmental cost flows.
B)Product costs.
C)Profitability of products.
D)Profitability of product mix.

Question

Quizplus · Accepted Answer

Process costing is designed to accumulate costs for continuous production processes, determining costs of individual products and departmental cost flows, not the profitability of a product mix. Profitability of a product mix involves analyzing the combined effects of selling multiple products, which goes beyond the scope of process costing.

Process Costing Is Not Intended to Help Determine