Which of the following statements about operation costing is(are) true?
I. Conversion costs are accumulated by department.
II. Direct material costs are accumulated by batch.
III. Operation costing is a hybrid product-costing system.
A) I only.
B) I and II.
C) I and III.
D) II and III.
E) I, II, and III.

Question

Quizplus · Accepted Answer

Operation costing combines elements of both job-order and process costing systems, making it a hybrid system. Conversion costs are accumulated by department, and direct material costs are accumulated by batch.

Which of the Following Statements About Operation Costing Is(are) True