MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

Question

Question:
A situation in which there is mass production of identical units of products and costs are not necessarily assigned to individual units of output is known as:
A. Job costing
B. Step costing
C. Joint costing
D. Process costing
E. Batch costing

Answer

Answer:
D. Process costing

Explanation:
Process costing is used when products are mass-produced in continuous processes, and costs are accumulated for each process or department rather than for individual units.

Tags: Cost Allocation, Mass Production, Process Costing
Level: Level 1

Topic: Costing Techniques
Series: MAY 2017

Uploader: Kwame Aikins

MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

Explanation:
Process costing is used when products are mass-produced in continuous processes, and costs are accumulated for each process or department rather than for individual units.

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MI – May 2017 – L1 – SA – Q7 – Costing Techniques

Identify the costing method used for mass production.

Explanation: Process costing is used when products are mass-produced in continuous processes, and costs are accumulated for each process or department rather than for individual units.

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Explanation:
Process costing is used when products are mass-produced in continuous processes, and costs are accumulated for each process or department rather than for individual units.