Vidyalelo
Commerce · Q683

Costing

Graduate and Post Graduate · Commerce · question 683

Q683

First step in process costing system is to

A.
summarize flow of output
Answer
B.
compute output in units
C.
summarize total costs
D.
compute cost for each equivalent unit

Answer: Option A

Solution

Answer: Option A
Solution:
First step in process costing system is to summarize flow of output. Flow is more inline with the concept of a function, that is, a Flow has both input and output parameters.