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Commerce · Q681

Costing

Graduate and Post Graduate · Commerce · question 681

Q681

A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

A.
accounting period costing system
B.
process costing system
Answer
C.
job costing system
D.
none of above

Answer: Option B

Solution

Answer: Option B
Solution:
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.