Question: In process costing, why are costs often divided into two main dlasshcaons? O A. Process costing systems separate costs into cost categories accarding to the

 In process costing, why are costs often divided into two main

In process costing, why are costs often divided into two main dlasshcaons? O A. Process costing systems separate costs into cost categories accarding to the rventory method boing used Indiredt costs are used under t and drect costs are used under tha FIFO method he waightod-sverago method classications, fixod and are often added throughout the procass. manufacture of a product and comersion costs are applicable any whan a service is being provided s separate costs into oost categories according to the tirming ot wihen costs are introduced into tha process. Oten, orly two cost variabla costs, are neoessary. Fixed costs are anly added at the start of the process and varlable costs are added at the end s costing systems separste costs into cost catogories according to the timing at when costs ave introduced irao the grocess. Ofhen ony swo cost t materials and convarsion casts, are necessary. Direct materials ara requertly added at the start or end of the prooes and converaion costs separata costs into cost catagorkos according to the type of product or service bocing pravided Direct matarials are applicable only to the O D. Process costing systens

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