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In Process Costing,production Costs Are Accumulated by Process

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In process costing,production costs are accumulated by process.At the end of the period,the total production costs incurred must be split into two components.What are these two components?


Definitions:

Market Rate

The prevailing price or interest rate for goods, services, or securities in a competitive marketplace.

User Cost

The cost of using a good or service, which includes the opportunity cost of not using the asset in an alternative use.

Opportunity Cost

The cost of choosing one option over another, typically represented by the benefits that could have been gained by choosing the alternative.

Depletable Resource

A natural resource that can be diminished or exhausted by use, such as fossil fuels, minerals, or forests.

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