Process Costing Is Used to Account For

question 68

Multiple Choice

Process costing is used to account for:

• A) large numbers of identical products that are produced in a continuous manufacturing environment.
• B) small numbers of products that are produced in batches.
• C) raw materials that are converted directly to finished goods.
• D) finished goods that are refined and processed further.
• E) large numbers of products that are produced in a non-repetitive process.

---

Definitions:

Offshore Source

Obtaining goods or services from another country, often with the intention of reducing costs.

Delivered Duty Paid

An international trade term where the seller is responsible for delivering goods at the buyer's doorstep, clearing customs, and paying all import duties.

Incoterm

A set of predefined commercial terms published by the International Chamber of Commerce relating to international commercial law.

Supplier Responsibilities

Supplier responsibilities involve obligations that vendors must fulfill, including delivering quality goods on time, adhering to contracts, and maintaining ethical practices.