Which of the following is the first step of the 5-step process costing procedure?
A)Compute output in terms of equivalent units
B)Summarize total costs to account for
C)Summarize the flow of physical units
D)Compute the cost per equivalent unit

Question

Quizplus · Accepted Answer

The first step in the 5-step process costing procedure is to summarize the flow of physical units. This involves tracking the units as they move through the production process, from raw materials to finished goods. Only after this step can the other steps, such as computing output in terms of equivalent units and determining the cost per equivalent unit, be completed.

Which of the Following Is the First Step of the 5-Step