Asked by Ambrianna Jones on Jul 03, 2024
Verified
Process costing and operation costing are consistent with the concepts of responsibility accounting.
Process Costing
A method of assigning production costs to units of output by averaging costs over the total units produced, ideal for homogeneous products.
Operation Costing
A hybrid costing system that combines aspects of both job costing and process costing, often used in manufacturing goods that have both common and unique characteristics.
- Gain insight into the selection principles and utilization of costing systems in manufacturing environments.
- Acquire knowledge about the sequence of actions in the process costing system and the methods of cost accumulation and assignment.
Verified Answer
MM
Mariam MuhammadJul 08, 2024
Final Answer :
True
Explanation :
Both process costing and operation costing involve identifying costs at different stages of the production process and assigning responsibility for those costs to specific departments or individuals. This aligns with the principles of responsibility accounting, which emphasizes tracking and monitoring costs at the individual level to promote accountability and improve decision-making.
Learning Objectives
- Gain insight into the selection principles and utilization of costing systems in manufacturing environments.
- Acquire knowledge about the sequence of actions in the process costing system and the methods of cost accumulation and assignment.
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