question content area for which of the following businesses would a process cost system be appropriate? a.shampoo manufacturer b.dressmaker c.custom furniture manufacturer d.boat repair service

Respuesta :

Shampoo manufacturer is the businesses for which process cost system be appropriate .

What is Process Costing ?

Process costing is a method of accounting that tracks and totals the direct expenses of a manufacturing process and assigns the indirect costs. Products are given costs, typically in a big batch that may cover a month's worth of production. Costs eventually need to be distributed among distinct product units. It is the antithesis of job costing, which seeks to assess the specific costs of production for each unit, and gives average costs to each item.

Process costing, a subset of operation costing, is used to calculate a product's cost at each stage or process of production. Process costing is defined by CIMA as "the costing approach used when products or services are produced via a series of ongoing or recurring operations or processes. Over the units produced over the time, costs are averaged ".

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