Multiple Choice
A checking account entry is considered money because it:
18
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which type of accounting is most appropriate for operations characterized by repetitive processing of homogeneous products?
A
Standard costing
B
Job order costing
C
Activity-based costing
D
Process costing
Verified step by step guidance1
Understand the nature of operations characterized by repetitive processing of homogeneous products. These operations typically involve producing large quantities of identical items, such as in manufacturing industries like chemicals, food processing, or textiles.
Learn about process costing. Process costing is a method of accounting used to allocate costs to products in industries where production is continuous and products are indistinguishable from one another.
Compare process costing with other costing methods: Standard costing focuses on setting cost benchmarks, job order costing is used for customized or unique products, and activity-based costing allocates costs based on activities. None of these methods are as suitable as process costing for homogeneous products.
Recognize that process costing accumulates costs for each production process or department and then averages these costs over all units produced during a specific period.
Conclude that process costing is the most appropriate method for operations involving repetitive processing of homogeneous products, as it efficiently tracks and allocates costs in such scenarios.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations