In Process Costing, __________ Costing Can Be Used to Assign

question 81

Short Answer

In process costing, __________ costing can be used to assign shared overhead to processes.

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Definitions:

Job-Order Costing

A cost accounting system that accumulates manufacturing costs separately for each job or order, suitable for industries producing customized products.

Overapplied Overhead

A situation where the allocated overhead cost in accounting is more than the actual overhead incurred.

Underapplied Overhead

The amount by which the actual manufacturing overhead cost exceeds the applied overhead cost.

Job-Order Costing

Job-order costing is a costing method used to determine the cost of manufacturing each custom-made product or job, particularly effective for individual or special products.