The production process determines the product costing system needed.

Question

Quizplus · Accepted Answer

The production process plays a critical role in determining the appropriate product costing methods to be used. The exact steps and stages involved in manufacturing or creating a product can influence the cost of production, and by extension, the price of the final product. Companies need to pick a costing system that suits their production process to estimate the total cost of manufacturing their products accurately.

The Production Process Determines the Product Costing System Needed