Question

Operation costing is a hybrid of:

a. marginal and standard costing.
b. job-order and process costing.
c. job-order and standard costing.
d. process and marginal costing.

Answer 1

Operation costing is a combination of job-order and process costing, used commonly in manufacturing where both custom and continuous processes are present.

Step-by-step explanation:

Operation costing is a hybrid of job-order and process costing. It combines elements of both costing systems to provide a more accurate means of allocating costs in environments where both job-specific and continuous process operations exist. This type of costing system is often utilized in manufacturing settings where parts are produced in a continuous process, and then those parts are used to create custom products.