Q47
Process cost is ascertained and recorded in ________.
A.
balance sheet
B.
profit and loss a/c
C.
separate statement
D.
separate ledger a/c
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Process cost is ascertained and recorded in separate ledger a/c. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.