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) Job order cost accounting system.
B) Process costing system.
C) General cost accounting system.
D) Work in Process accounting system.
E) Manufacturing cost accounting system.

Question

Quizplus · Accepted Answer

This type of system describes process costing, in which costs are accumulated and measured per unit at the end of a period by combining costs per equivalent unit from various production departments. Job order cost accounting systems focus on individual jobs or batches of products, whereas general cost accounting and work in process accounting are broad terms that could include multiple types of systems. Manufacturing cost accounting is a general term that also covers multiple types of costing systems.

A System of Accounting in Which Costs Are Accumulated and Then