An operation costing system is:

Multiple Choice

• identical to a process costing system except that actual cost is used for manufacturing overhead.

• the same as a process costing system except that materials are allocated on the basis of batches of production.

• the same as a job order costing system except that materials are accounted for in the same way as they are in a process costing system.

• the same as a job order costing system except that no overhead allocations are made since actual costs are used throughout.