Multiple choice

Directions: Choose the correct option for the given question.

In ______ costing, no distinction is made between direct and indirect materials.

  1. job

  2. contract

  3. process

  4. service

  5. marginal
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In process costing, costs are accumulated by department or process rather than by individual jobs, so the distinction between direct and indirect materials is less critical than in job costing.

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