Which of the Following Statements Best Defines an Operation Costing

question 72

Multiple Choice

Which of the following statements best defines an operation costing system?

• A) It is identical to a process costing system except that actual manufacturing overhead costs are traced to units of product.
• B) It is the same as a process costing system except that direct materials costs are accounted for in the same way as in job-order costing system.
• C) It is the same as a job-order costing system except that direct materials costs are accounted for in the same way as in a process costing system.
• D) It is identical to a job-order costing system except that actual manufacturing overhead costs are traced to units of product.

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