A costing system that determines an average cost for all units of product in a particular time period is a
A) Job costing system
B) Batch costing system
C) Process costing system
D) Direct costing system

Question

Quizplus · Accepted Answer

A process costing system determines an average cost for all units of product produced within a specific period, usually used in industries like chemical and food processing. Job costing system allocates the cost to each job, while batch costing system is used when different batches of similar products are produced at the same time. Direct costing system considers only variable costs and does not allocate fixed overhead costs to products.

A Costing System That Determines an Average Cost for All