What are the characteristics of industries most likely to use
Determine the characteristics of industries that are most likely to use process costing.
Explanation of Solution
Process costing:
Process costing is used to describe one of the methods of collecting and assigning manufacturing costs. Process costing is used to assign the cost of those products that are produced in identical units or are produced in large number.
The characteristics of industries that are most likely to use process costing:
- Industries that produce products which are homogenous in nature use process costing for the determination of manufacturing costs.
- Examples of such industries are oil refining, production of chemicals and processed food.
Want to see more full solutions like this?
Chapter 8 Solutions
FUNDAMENTAL'S OF COST ACCOUNTING LL
Additional Business Textbook Solutions
Introduction To Managerial Accounting
Fundamentals Of Financial Accounting
Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting, Student Value Edition (5th Edition)
Managerial Accounting (5th Edition)
Intermediate Accounting (2nd Edition)
- Describe the product life cycle. How do unit-level costs behave in relation to the product life cycle? Batch-level costs? Product-level costs? Facility-level costs?arrow_forwardWhat are the objectives of a cost management information system?arrow_forwardWhat are equivalent units of production, and how are they used in process costing?arrow_forward
- Can a company gather information for both variable and absorption costing systems?arrow_forwardHow does process costing treat the costs transferred in from another department?arrow_forwardWhat are the two main things that an activity-based costing system attempts to accomplish relative to direct and indirect costs?arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,