Question

Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process.

Answer 1

Process-costing systems separate costs into cost categories based on the timing of when costs are introduced into the production process.

Step-by-step explanation:

Process-costing systems are commonly used in manufacturing companies to track and allocate costs to products. These systems separate costs into cost categories based on the timing of when costs are introduced into the production process.

For example, in a process-costing system, costs may be categorized as direct materials, direct labor, and manufacturing overhead. Direct materials and direct labor costs are typically introduced into the process at the beginning, while manufacturing overhead costs are incurred throughout the production process.

This method of cost separation helps companies determine the cost per unit of a product and evaluate the efficiency of their manufacturing processes.