Companies characterised by the production of heterogeneous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit cost data —

CS Executive · Cost and Management Accounting · PYQS · December 2014
Companies characterised by the production of heterogeneous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit cost data —
(A) Process costing
(B) Job-order costing
(C) Direct costing
(D) Absorption costing.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Job-order costing.

Topics: Costing Methods

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