Operation costing:

a) tends to parallel process costing with respect to the treatment of conversion cost.
b) tends to parallel process costing with respect to the treatment of direct materials.
c) would likely be used by a manufacturing plant that produces one model of a single product.
d) tends to parallel job-order costing with respect to the treatment of conversion cost.
e) is commonly known as a joint-costing system.

Question

09-03-2020
Business

contestada

Operation costing:

a) tends to parallel process costing with respect to the treatment of conversion cost.
b) tends to parallel process costing with respect to the treatment of direct materials.
c) would likely be used by a manufacturing plant that produces one model of a single product.
d) tends to parallel job-order costing with respect to the treatment of conversion cost.
e) is commonly known as a joint-costing system.

Respuesta :

Otras preguntas

How did America develop a unique culture identity after the Revolution?

Dogs, especially sniffer dogs, have a far better sense of smell than humans because their smell receptors are much longer than those in human noses. Human noses

What's the square root of 19

in what ways does the penny inconvenience people?

If z is an even integer which of the following expressions must represent an odd integer?

what the atomic mass of boron

Consisting of an electric coil on a small paddle held over an area of the brain, __________ deactivates areas of the brain, allowing scientists to learn their f

how many Sig figs does 3.0050?

can the gcf of a pair of numbers be greater than the pair itself

two point on a line are (-10,1) and (5,-5). if the y-coordinate of another pinot on the line is -3, what is the x_coordinate?

ladeitan ladeitan · Answer 1 · 2020-03-11T03:06:56+01:00

Answer: The correct answer is a) tends to parallel process costing with respect to the treatment of conversion cost.

Explanation: There are five main ways of applying costing techniques to the establishment of unit costs:

They fall into two main categories:

(a) Operation costing - This is the method of finding the average unit cost of a stream of identical cost units, further subdivided into:

Process costing (relating to standardized goods)
Service costing (relating to standardized services )

(b) Specific order costing - method of finding the cost of unique cost units. Sub-divided into:

Job costing
Batch costing
Contract costing

So, let's discuss process costing and service costing.

Process costing: In some industries, the output produced emerges from a continuous process. For example, oil refining or food production. Process costing applies when standardized goods are produced from a series of interwoven operations but the issue that arises include attribution of materials costs and conversion costs to units of finished output and occurrence of losses during the process.

Service costing applies where monotonous services are provided either by an organisation or a particular cost centre within such organisation. As the name implies, service costing applies where there is no physical product, when the service is measurable in standard units, cost can be charged to activities and averaged over the units produced.