_______________ accumulates production costs by process and uses a work-in-process account for each process.
A) Process costing
B) Joint costing
C) Variable costing
D) Job-order costing

Question

Quizplus · Accepted Answer

Process costing is a method of accumulating production costs by process and uses a work-in-process account for each process. This method is commonly used when a company produces large quantities of homogeneous products, such as oil refining or chemical production. Joint costing is used when two or more products are produced from a single input, variable costing is a method of costing that only includes variable costs, and job-order costing is used when products are produced in small batches or individual units.

_______________ Accumulates Production Costs by Process and Uses a Work-In-Process