When Should Process Costing Techniques Be Used in Assigning Costs

question 95

Multiple Choice

When should process costing techniques be used in assigning costs to products?

• A) If the firm manufactures heterogeneous products
• B) If the products are repetitively produced
• C) If the products are manufactured according to customer specifications
• D) All of these

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Definitions:

Departmentalization

The process of dividing an organization into different departments or units, each of which specializes in a specific area of operation.

Formal Teams

Groups within an organization that are officially recognized and organized with specific roles and tasks to achieve collective goals.

Grouping Work Positions

The process of organizing jobs and responsibilities within a company into specific categories or departments to streamline operations.

Functional Structure

An organizational design that groups employees by their similar specializations, roles, or tasks.