Homework Answers
24) The correct option is B.
- Process costing is the method of costing that produces in quantities through processes involved
- In this method, units of product are similar and relatively homogeneous and it's difficult to differentiate between the products.
- So, products are easily differentiated from each other is not a characteristic of process costing operations.
25) The correct option is C.
- overhead costs are those costs related to indirect material and indirect labour and some other expenses in oder to carry the processes
- In general, in process costing, it is difficult to trace material and labour cost for a particular product and with comparison to these costs, Overheads are somewhat more difficult to trace to a particular product as the overheads are from various sources.
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