Process costing is a system of
A)inventory management.
B)manufacturing.
C)product costing.
D)product placement.

Question

Quizplus · Accepted Answer

Process costing is a system of product costing that assigns costs to each stage of a production process, rather than to individual units. It is commonly used in industries with high volumes of homogeneous products, such as chemical manufacturing or food processing. The purpose of process costing is to determine the cost of production per unit, which is useful for pricing decisions and inventory valuation. Therefore, the best choice is C) product costing.

Process Costing Is a System of