Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 17 - Process Costing - Assignment Material - Questions - Page 696: 17-2

Answer

In process costing, costs are typically divided into two main categories: direct materials and conversion costs. Direct materials are added at a specific point in the process, while conversion costs, which include labor and overhead, are added throughout the process, which can vary in duration. This division helps in accurate cost tracking.

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