What are the two basic types of product costing systems?
A)Department and plant
B)FIFO and weighted-average
C)Job and process
D)Variable and process

Question

Quizplus · Accepted Answer

The two basic types of product costing systems are job costing and process costing. Job costing is used when products are customized or unique, and costs are accumulated by individual jobs or orders. Process costing is used when products are homogeneous and produced in large quantities, and costs are accumulated by departments or production processes. Option A is incorrect because department and plant are not types of costing systems. Option B is incorrect because FIFO and weighted-average are methods of inventory valuation, not types of costing systems. Option D is incorrect because variable and process are not types of costing systems.

What Are the Two Basic Types of Product Costing Systems