) Process costing ________.
A) allocates all product costs, including materials, and labor
B) results in different costs for different units produced
C) is commonly used by general contractors who construct custom-built homes
D) is used exclusively in manufacturing

Respuesta :

Answer:

D) is used exclusively in manufacturing

Explanation:

  • As the processing costs are directly related to the direct and the indirect costs of the manufacturing processes. These costs are usually assigned to large scale batch processings and assigned to every individual cost of each unit. Assigned when the company processes huge homogeneous products.

Thus has the following four steps:

1. Summarize the flow of all physical units of the output.

2. Compute the output in the terms of the equivalent units.

3. Summarize total costs to the account for and the Compute equivalent unit of costs.

4. Assign total costs to the units completed and to the units in ending work in the process inventory.