Final answer:
The most common approach to product costing throughout the world is average total cost (ATC) costing.
Step-by-step explanation:
The most common approach to product costing throughout the world is average total cost (ATC) costing.
Product costing is the process of determining the cost of producing a specific product or service. Average total cost, also known as average cost, is the total cost of producing a given quantity divided by the quantity produced. It represents the average cost per unit of output.
For example, if a company produces 100 units of a product and incurs a total cost of $1,000, the average total cost per unit will be $10 ($1,000/100). This approach is commonly used in business to analyze and evaluate the cost structure of products and services.