{"id":56064,"date":"2024-04-16T00:38:10","date_gmt":"2024-04-16T00:38:10","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56064"},"modified":"2024-04-16T00:38:10","modified_gmt":"2024-04-16T00:38:10","slug":"a-unit-cost-calculated-in-costing-system-by-assigning-total-costs-incurred-to-many-similar-units-is-categorized-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-unit-cost-calculated-in-costing-system-by-assigning-total-costs-incurred-to-many-similar-units-is-categorized-as\/","title":{"rendered":"A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as"},"content":{"rendered":"

[amp_mcq option1=”accounting period costing system” option2=”process costing system” option3=”job costing system” option4=”none of above” correct=”option2″]<\/p>\n

The correct answer is: B. process costing system.<\/p>\n

A process costing system is a costing system used to assign costs to large numbers of identical or similar units of production. It is used in industries where the products are mass-produced, such as the chemical, oil, and food processing industries.<\/p>\n

In a process costing system, costs are accumulated by process or department, and then assigned to units of production using a cost allocation method such as the weighted average method or the first-in, first-out (FIFO) method.<\/p>\n

The main advantage of a process costing system is that it is relatively simple to use and can be applied to a wide variety of products. However, it can be difficult to accurately track the costs of individual units of production, and it can be difficult to identify the causes of variances in costs.<\/p>\n

Here is a brief explanation of each option:<\/p>\n