What costing system accumulates production costs by process and uses a work-in-process account for each process?
A)process costing
B)joint costing
C)variable costing
D)job-order costing

Question

Quizplus · Accepted Answer

Process costing is used when there is mass production of identical or similar products, whereby the costs are accumulated by process or department. In this approach, the costs of each process are tracked separately and a work-in-process account is maintained for each process to record the costs incurred within that particular stage of the production process. Joint costing is used when there are multiple products produced from a single input, variable costing is a method of inventory costing, and job-order costing accumulates costs by job order.

What Costing System Accumulates Production Costs by Process and Uses