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Commerce · Q673

Costing

Graduate and Post Graduate · Commerce · question 673

Q673

Total cost of producing similar products divided by number of units produced is a technique known as

A.
sale costing system
B.
job costing system
C.
price costing system
D.
process costing system
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Total cost of producing similar products divided by number of units produced is a technique known 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.