COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Direct materials.
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Direct labour.
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Manufacturing overhead.
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All of these.
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Detailed explanation-1: -The correct option is (D) All of these. In process costing, cost are accounted for every process of the manufacturing. Each process may have its own materials, labor and overhead expenses.
Detailed explanation-2: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead.
Detailed explanation-3: -The elements are: 1. Materials 2. Labour 3. Production Overhead.
Detailed explanation-4: -The three elements of manufacturing costs are material, labour, and manufacturing overhead.
Detailed explanation-5: -Process costing is a system for assigning manufacturing costs to each unit produced. This system accumulates direct materials, direct labor, and overhead costs separately and assigns an average cost to each unit produced.