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Western Governors University (WGU) ACCT3314 D101 Cost And Managerial Accounting Practice Exam
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Question Number 5
Which is a true statement regarding process costing?
Process costing includes only direct materials and direct labor costs and excludes manufacturing overhead costs when computing the cost of finished goods.
The focus of the cost computations in process costing is on the unique job being worked on.
Process costing assigns costs equally to each unit produced during a period.
In process costing, even though manufacturing companies can specifically identify costs for each product being produced, they find it easier to calculate the average cost of all products.
✔ Correct Answer:
Process costing assigns costs equally to each unit produced during a period.
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