Second step in processing costing system is to
A. summarize total costs
B. compute cost for each equivalent unit
C. summarize flow of output
D. compute output in units
Answer: Option D
Solution(By Examveda Team)
Second step in processing costing system is to compute output in units. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process.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
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