Asked by Antonia Divinity on May 12, 2024
Verified
Which of the following is a true statement about process cost systems?
A) In process cost systems costs are accumulated but not assigned.
B) A process cost system has one work in process account for each process.
C) In process cost systems costs are summarized on job cost sheets.
D) Unit costs are not computed in process cost systems.
Process Cost Systems
Accounting methods used in industries where similar products are produced in a continuous process, allocating costs proportionally across all units produced.
Work In Process Account
An account that tracks the costs associated with the production process, including labor, materials, and overhead, for products that are not yet completed.
- Achieve an understanding of how process cost and job order cost systems integrate and differ.
Verified Answer
LR
LILLIAN REANIERMay 18, 2024
Final Answer :
B
Explanation :
In process cost systems, there is typically one work in process account for each process or department. Costs are accumulated and assigned to these accounts, allowing for tracking of costs through each stage of production. Option A is not correct as costs are assigned to specific processes or departments. Option C is incorrect as job cost sheets are typically used in job order costing systems. Option D is incorrect as unit costs are computed in process cost systems.
Learning Objectives
- Achieve an understanding of how process cost and job order cost systems integrate and differ.