The product costing system normally used to assign costs to goods that are mass produced is
A) fixed costing.
B) job costing.
C) LIFO costing.
D) process costing.

Question

Quizplus · Accepted Answer

Process costing is typically used for mass-produced goods that are produced in large quantities, such as in a factory setting. It involves assigning costs to each production department or process, and then allocating those costs to the goods produced based on the number of units or the amount of material used. This is different from job costing, which is used for custom or unique products, and fixed or LIFO costing, which are methods of valuing inventory rather than assigning production costs.

The Product Costing System Normally Used to Assign Costs to Goods