TRUE OR FALSE The process of assigning cost to inventories a

TRUE OR FALSE? The process of assigning cost to inventories as they are converted from raw material to finished goods is called product costing. Please provide a rationale.

Solution

The statement that the process of assigning cost to inventories as they are converted from raw material to finished goods is called product costing is TRUE

The term “product costing” includes all costs incurred in the manufacturing of products.”