Operation costing:
A) tends to parallel job-order costing with respect to the treatment of conversion cost.
B) tends to parallel process costing with respect to the treatment of conversion cost.
C) tends to parallel process costing with respect to the treatment of direct materials.
D) would likely be used by a manufacturing plant that produces one model of a single product.
E) is commonly known as a joint-costing system.

Question

Quizplus · Accepted Answer

Operation costing is a hybrid system that combines elements of both job-order and process costing. It parallels process costing in the treatment of conversion costs, which are accumulated by department or process.

Operation Costing