A system of accounting in which costs are accumulated and then measured per unit at the end of a period by combining costs per equivalent unit from various departments is a:
A)General cost accounting system.
B)Process costing system.
C)Job order cost accounting system.
D)Manufacturing cost accounting system.
E)Work in Process accounting system.

Question

Quizplus · Accepted Answer

The description provided in the question is characteristic of a process costing system, which is commonly used in manufacturing industries where products go through multiple stages of production. Costs are accumulated for each department or process, and then measured per unit by combining the costs per equivalent unit from various processes at the end of the period. This approach allows for a more accurate determination of product costs, particularly when the production process involves multiple inputs, outputs, and cost allocation.

A System of Accounting in Which Costs Are Accumulated and Then