First step in process costing system is to
A. summarize flow of output
B. compute output in units
C. summarize total costs
D. compute cost for each equivalent unit
Answer: Option A
Solution(By Examveda Team)
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.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Join The Discussion