Why do some firms prefer process costing to job-order costing?
AIt gives exact unit costs
BIt needs less bookkeeping
CIt needs more bookkeeping
DIt tracks each order separately
Answer & Solution
Correct answer: B. It needs less bookkeeping
Because unit costs are averages, there is no need to record costs order by order, so bookkeeping is lighter.
Keep practising Process Costing
Browse all Process Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Feedback from process costing helps managers toProcess costing is a type ofWhich by-product comes from wine fermentation?Gasoline was once a by-product ofHides and leather from beef production may be calledBy-products are called co-products when they areBy-product NRV is recognized as other income or asBy-products conventionally get what share of joint costs?