Vidyalelo
Commerce · Q686

Costing

Graduate and Post Graduate · Commerce · question 686

Q686

Fifth step in process costing system is to

A.
allocate separable costs
B.
allocate joint costs
C.
compute gross margin
D.
assign total cost to completed units
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Fifth step in process costing system is to assign total cost to completed units. Total cost is an economic measure that sums all expenses paid to produce a product, purchase an investment, or acquire a piece of equipment including not only the initial cash outlay but also the opportunity cost of their choices.