Q. Process costing provides a system of costing where the following characteristicsoccur. Identify which of the following are correct: (Solved)
1. Output is continually produced from the manufacturing process. Materials might be added in full at the start of a process or might be added gradually throughout the process.
2. There might be losses in the process. Process costing provides a method of measuring and costing incomplete WIP.
3. When more than one product is output, they might be called joint products or a by-product, depending upon the relative value of the products. Process costing offers methods of costing each of the different products.
4. All of the above are correct
- d. All of the above are correct