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Question
Process costing is also known as ________ costing.
Process costing is also known as ________ costing.
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Solution
The correct option is B Continuous
When a product passes through different stages, then it is essential to know the cost of each process. In such a situation, process costing is used. Normally, finished product of one process is used as raw material for the next process and a final product is obtained in the last process. As the products are manufactured in a continuous process, this is also known as continuous costing.
When a product passes through different stages, then it is essential to know the cost of each process. In such a situation, process costing is used. Normally, finished product of one process is used as raw material for the next process and a final product is obtained in the last process.
As the products are manufactured in a continuous process, this is also known as continuous costing.
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