What types of costs are normally found in a process accounting system?
A) materials, labor and overhead
B) materials and labor
C) labor and overhead
D) overhead, selling and administrative

Question

Quizplus · Accepted Answer

Process accounting systems typically track the costs of manufacturing a product through various stages or processes. The three main types of costs incurred are materials, labor, and overhead. Materials are the raw materials used to make the product, labor refers to the direct labor used to produce the product, and overhead includes indirect costs such as equipment usage, utilities, and rent. Therefore, A is the best choice as it includes all three types of costs.

What Types of Costs Are Normally Found in a Process