The first step in process costing system is to ___________?
Correct answer: A. summarize flow of output
- A. summarize flow of output
- B. compute output in units
- C. summarize total costs
- D. compute cost for each equivalent unitGet Executive Coaching
Explanation
The first step is to summarize the physical flow of output, including units to account for and units accounted for. Equivalent units and costs are computed only after this physical flow is established.
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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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