COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost accumulation is done based on the process
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very heterogeneous product
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Cost per unit is calculated by dividing the total cost for a period by the number of units produced in that period
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accumulated costs by department
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Detailed explanation-1: -Answer and Explanation: The correct answer is option b. The system accumulates costs per job. A process cost system is a cost accounting system that is used by the company in ascertaining the cost of producing a product at a particular process or stage of manufacturing.
Detailed explanation-2: -The features of process costing employed in industries are: (1) Production is continuous, in a series of stages called processes. (2) Each process is deemed as a cost centre and costs are accumulated for each process separately along with output, finished and in progress. (3) Products and processes are standardised.
Detailed explanation-3: -Answer and Explanation: The correct answer is c. products are heterogeneous. Process costing is not applicable to heterogeneous products because they are unique products.
Detailed explanation-4: -A-The products produced are heterogeneous in nature. This is the correct option because process costing is normally used when the products are HOMOGENEOUS.