In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.

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In process costing, costs are assigned to the specific production process or department, not to individual units of product. As such, the manufacturing costs are allocated to the product's production process, regardless of whether a particular unit of product is complete or partially complete. Thus, the costs assigned to the product are based on the physical movement of the product within the production process.

In Process Costing, the Manufacturing Costs Assigned to the Product