COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the products are identical or very similar in nature.
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they are grouped in batches.
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they are produced at the time an order is received.
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their costs are accumulated on job cost sheets.
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Detailed explanation-1: -Standardization of product, process, materials, machine and uninterrupted flow of materials are the main characteristics of this system. Mass production system is employed in several industries where the production is carried on without any interruption.
Detailed explanation-2: -Characteristics of continuous or processes production (i) All products undergo the same process. Raw materials enter at one point and leaves as finished product at another. (iii) Plant layout is as per the requirements of production. (iv) Both types of workers i.e. semiskilled and skilled are employed.
Detailed explanation-3: -A characteristic of products that are mass-produced in a continuous fashion is that.. the products are identical or very similar in nature. they are grouped in batches. they are produced at the time an order is received.
Detailed explanation-4: -Mass production methods are based on two general principles: (1) the division and specialization of human labour and (2) the use of tools, machinery, and other equipment, usually automated, in the production of standard, interchangeable parts and products.