Total cost of producing similar products divided by number of units produced is a technique known as ____________?
Correct answer: D. process costing system
- A. sale costing system
- B. job costing system
- C. price costing system
- D. process costing system
Explanation
Process costing accumulates the total cost of similar or homogeneous products and divides it by units produced to obtain an average unit cost. Job costing instead traces costs to distinct jobs or batches.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate ___________?
If an allocated indirect cost is $1500 and the actual incurred indirect cost is $1200, then this is classified as __________?
The budgeted total direct labor cost is divided with budgeted total direct labor, to calculate ___________?
The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?
An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called ___________?
In normal costing, the manufacturing overhead allocated is also called _________?