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 produced in batches, and each batch is unique and identifiable. Examples include custom-made furniture, jewelry, and architecture. On the other hand, process costing is used when products are produced in a continuous manner, and it is difficult to identify the cost of each unit. Examples include oil refining, chemical processing, and food processing. Therefore, option C is the correct answer.

What Are the Two Basic Types of Product Costing Systems