A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:A. General cost accounting system. B. Process cost accounting system. C. Job order cost accounting system. D. Manufacturing cost accounting system. E. Goods in process accounting system.

Question

Justin Hunter

Business

29 April, 02:15

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:A. General cost accounting system. B. Process cost accounting system. C. Job order cost accounting system. D. Manufacturing cost accounting system. E. Goods in process accounting system.

+1

Answers (1)

Know the Answer?

Pierce Hodges · Answer 1

B. Process cost accounting system.

Explanation:

On Process costing the cost added during the month are allocated to the units that passed through the process.

It is use for high volume of homogenueos units, meaning a unit has no diference with another and their cost are the same. This goes with the concept of equivalent units, so the ending inventory can be valuated base on completion.