Asked by Angelica Renata on Jun 03, 2024
Verified
Operation costing is appropriate for products with the following characteristics.
i. Repetitive mass production
ii. Individual products
iii. Large batches with repetitive processes
iv. Some unique features, some common features
A) i and iii
B) i and iv
C) ii and iii
D) iii and iv
Operation Costing
A hybrid costing system used where products have some common and some individual processes or components.
Repetitive Mass Production
A manufacturing process where the same product is produced in high volumes using a continuous, streamlined process.
Unique Features
Characteristics or aspects that distinguish a product, service, or concept from others in its category.
- Recognize the qualities of operational costing and the appropriate circumstances for its use.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
Operation costing is suitable for situations where products are produced in large batches with repetitive processes (iii) and have both some unique and some common features (iv). This method combines elements of job costing and process costing, making it appropriate for products that are not entirely uniform but undergo similar processes.
Learning Objectives
- Recognize the qualities of operational costing and the appropriate circumstances for its use.