An averaging process is used to compute unit product costs under which of the following costing method(s)
A)neither job-order nor process.
B)process but not job-order.
C)job-order but not process.
D)both job-order and process.

Question

Quizplus · Accepted Answer

An averaging process is used to compute unit product costs under both job-order and process costing methods. In process costing, it involves taking the total production cost of a process and dividing it by the total number of units produced, while in job-order costing, it involves taking the total cost of each job and dividing it by the number of units produced in that job.

An Averaging Process Is Used to Compute Unit Product Costs