The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called ____________?
Correct answer: C. process costing system
- A. conversion expense costing system
- B. inventory costing system
- C. process costing system
- D. job costing systemAccounting & Auditing
Explanation
A process costing system accumulates and classifies costs by production process or department, which is appropriate when similar units are produced continuously. 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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