Asked by Kaitlyn Simon on May 08, 2024
Verified
The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.
Process Cost System
An accounting method used to track production costs for continuous processes that produce homogeneous products.
Customers' Specifications
Detailed requirements or guidelines provided by a customer regarding how a product or service should be delivered or constructed.
- Acquire knowledge about the differentiation and implementation of job order cost and process cost accounting systems.
Verified Answer
SV
Sabrina VulajMay 13, 2024
Final Answer :
False
Explanation :
The statement describes a job order cost system, not a process cost system. Process cost systems are used when large quantities of identical products are manufactured, such as in the production of gasoline or soda.
Learning Objectives
- Acquire knowledge about the differentiation and implementation of job order cost and process cost accounting systems.