Question

When using process costing, nonmanufacturing costs are ______.

Answer 1

Answer:

b) expensed during the period

Explanation:

When using process costing, nonmanufacturing costs are expensed during the period.

Answer 2

Answer:

b) expensed during the period

Explanation:

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis.

Typically, process costing uses more than one Work in Process Inventory account because costing is done at each stage of the production or manufacturing process.

Generally Accepted Accounting Principles (GAAP) can be defined as the set of commonly used accounting standards in the U.S.

This ultimately implies that, the United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).

Under U.S Generally Accepted Accounting Principles (GAAP), when using process costing, non-manufacturing (administrative and selling) costs are expensed on the income statement of the company during the accounting period they were incurred.