Match the following statements about process costing with its associated accounting concept:
a. Cost measurement
b. Cost recognition
c. Matching concept
1. Because the processing of a continuous flow of similar products makes it difficult to track costs to individual units, the process costing system provides the cost information for product revenues to be measured against the expenses required to generate them. It provides managers with unit cost information, cost data for management decisions, and ending values for the Materials Inventory, Work in Process, and Finished Goods Inventory accounts.
2. Costs are tracked and accumulated by process, department, or work cell.
3. The report prepared at the end of each period assigns costs to products completed and transferred out and to the products remaining in the process, department, or work cell.

  • CreatedMarch 26, 2014
  • Files Included
Post your question