In a process-costing system when goods move from department to department,the accounting for such transfers is relatively simple under ________.
A) standard costing
B) FIFO costing
C) weighted-average costing
D) operations costing

Question

Quizplus · Accepted Answer

Weighted-average costing is a method of process costing in which the cost of each unit is calculated by adding the costs of the previous department to the costs added in the current department and dividing by the total number of units in the current department. This method considers all the costs incurred in the previous department, including the costs of units already completed and transferred, and therefore, the accounting for transfers becomes relatively simple. Standard costing and FIFO costing are methods of job costing, while operations costing is a hybrid between process and job costing.

In a Process-Costing System When Goods Move from Department to Department,the