A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as _________?
Correct answer: B. process costing system
- A. accounting period costing system
- B. process costing system
- C. job costing system
- D. none of aboveHire An Accountant
Explanation
Process costing assigns accumulated costs across large quantities of similar or identical units, producing an average unit cost. Job costing instead tracks costs separately for identifiable jobs or batches.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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