Which of the following factors influences management's approach to process costing?

A) The degree to which products are identical in their consumption of direct materials
B) The existence of work in process inventory at the end of the accounting period
C) The degree to which products are identical in their specific production processes
D) All of the given answers

Process Costing

A costing method used where similar items are produced in a continuous manufacturing environment, assigning costs based on the process they go through.

Direct Materials

Direct Materials are raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Work in Process Inventory

Items currently undergoing production but have not yet reached completion.