Identify the reason behind the costs often divided into two main classifications under process costing .

Question

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Answer 1

Question

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

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Answer 2

Question

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

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Answer 3

Question

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

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Answer 4

Question

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

Answer 6

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.

Answer 7

Chapter 5, Problem 1Q

To determine

Identify the reason behind the costs often divided into two main classifications under process costing.

Answer 8

Expert Solution & Answer

Explanation of Solution

Process Costing: Process costing is method of cost accounting in which all the costs that are incurred production process are recorded. Output of one process becomes input for next process. This method is used to apply cot to similar products that are mass-produced in uninterrupted manner.

The costs are divided into two main classifications that is direct material and conversion cost because these are identifiable cost.
It can be further classified based on the situation.
The direct material cost is the cost of material when introduced in the process.
The conversion cost is the cost incurred to convert the raw material into finished goods.
Direct material cost can be further divided into direct manufacturing labor cost.