Statement 1:Process costing is applicable to same or similar goodsStatement 2:Process costing is used by companies that make large number of similar products

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	True; True
B	True; False
C	False; True
D	False; False

Explanation:

Detailed explanation-1: -Process costing is a method of costing used mainly in manufacturing where units are continuously mass-produced through one or more processes. Examples of this include the manufacture of erasers, chemicals or processed food.

Detailed explanation-2: -Answer and Explanation: The correct answer is b. A process cost system has one work in process account for each department.

Detailed explanation-3: -Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.

Detailed explanation-4: -Process costing is not applicable to heterogeneous products because they are unique products.

There is 1 question to complete.