Answer:
A. True
Explanation:
It is an accounting that tracks business expenses, expenses and income with "business" and provides standardization of profit. In order to support the accounting system's business value, it must allow the allocation of cost numbers and revenue items separately. A business can be designated as a project for a customer or a single product unit or a group of units of the same type. In the production environment, the application of the cost of labor involves tracking what different types of “direct” labor costs are used, such as direct labor and direct materials, and then allocating jobs (indirect labor, warranty costs, quality control, and other additional costs). . An enterprise profit report is similar to a statement of profit or loss for the firm, but is specific to each business number. Business costs can estimate all the costs associated with the production of "work" or the production of goods produced in separate groups. These costs are recorded in the accounting records reflecting the life or work of the lot and are deducted from the final trial balance until the cost of the work or bulk production report is prepared.
Business costs VS process costs
Business value (also known by some as the cost of a job order) is important for management accounting. This process differs from the cost because more process or job cost tracking depends on the nature of the product and consequently the type of production process:
- The process cost is used when products are more homogenous. Also, costing systems assign different costs to production processes that are significantly different. The average cost of a single product is then calculated for each business.
- Process costing systems assign costs for one or more manufacturing processes. Because all units are the same or very similar, average costs per unit are calculated by dividing operating costs by the number of units produced.
- Many businesses produce products with some unique features and some common processes. These businesses use valuation systems with both business and operating cost values.
