Asked by Joshua Waterman on May 08, 2024
Verified
Process cost systems are used to apply costs to a specific job such as the manufacturing of a specialized machine.
Process Cost Systems
An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion, assigning costs to units of product based on the processes they go through.
Specialized Machine
Machinery designed to perform a specific task or function in a manufacturing or production process.
- Distinguish between the types of products and industries that use process cost systems versus those that use job order cost systems.
Verified Answer
JT
Jessica TorresMay 11, 2024
Final Answer :
False
Explanation :
Process cost systems are used to apply costs to a large number of identical or similar products that are produced in a continuous manner, such as in a manufacturing plant that produces a standardized product. Job order cost systems are used to apply costs to a specific job or project, such as the construction of a custom-built home or the design of a specialized machine.
Learning Objectives
- Distinguish between the types of products and industries that use process cost systems versus those that use job order cost systems.
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