Vidyalelo
Commerce · Q695

Costing

Graduate and Post Graduate · Commerce · question 695

Q695

Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called

A.
conversion expense costing system
B.
inventory costing system
C.
process costing system
Answer
D.
job costing system

Answer: Option C

Solution

Answer: Option C
Solution:
Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called 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.