ECONOMICS

Detailed explanation-1: -Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Estimating the degree of completion for the calculation of equivalent units is usually easier for conversion costs than it is for direct materials.

Detailed explanation-2: -The FIFO method assumes that the oldest products in a company’s inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.

Detailed explanation-3: -Expert-Verified Answer The true statements about the process costing is that Its accumulates product costs by production departments. A process cost refers to a cost that is used to ascertain the cost of a product at all stages of production. The process cost are used in companies that produce homogeneous goods.

Detailed explanation-4: -Process costing is a method of costing under which all costs are accumulated for each stage of production or process, and the Page 2 2 cost per unit of product is ascertained at each stage of production by dividing the cost of each process by the normal output of that process. 1.2.

Detailed explanation-5: -A process costing system is a method typically used within certain sectors of the manufacturing industry to determine the total production cost for each unit of product. It accumulates cost from each process or department and allocates them to the individual products produced.