COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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only work in process.
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only cost of goods sold.
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only raw materials.
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Detailed explanation-1: -Manufacturing costs fall into three broad categories of expenses: materials, labor, and overhead.
Detailed explanation-2: -Process manufacturing describes the manufacturing of products by combining supplies, ingredients, and raw materials using formulas or recipes. Manufacturers typically use chemical or thermal conversion to produce goods in bulk quantities.
Detailed explanation-3: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead.
Detailed explanation-4: -Process manufacturing is a production method that creates goods by combining supplies, ingredients or raw materials using a formula or recipe. It is frequently used in industries that produce bulk quantities of goods, such as food, beverages, refined oil, gasoline, pharmaceuticals, chemicals and plastics.