Question

Managers find operation costing useful in cost management because​ it: A. focuses on control of physical processes of a given production system B. often results in profit maximization C. uses job costing to account for the conversion costs and process costing for the material and customizable components D. results in cost minimization

Answer 1

Answer:

The answer is option  C) Managers find operation costing useful in cost management because​ it uses job costing to account for the conversion costs and process costing for the material and customizable components.

Explanation:

Operation costing is a mix of job costing and process costing,

In Process Costing, each process or stage of production is costed separately. while Job costing is used to calculate and assign the total cost of materials, labor, and overhead of a specific job.

The manufacture of a product may consist of several operations. In Operation Costing, costs are collected for each operation instead of each process or stage of manufacture.

Therefore, Managers find operation costing useful in cost management because​ it uses job costing to account for the conversion costs and process costing for the material and customizable components.