COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Process costing calculates production costs per department/section.
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Products produced according to consumer orders.
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The resulting product is the same and occurs continuously or continuously.
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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: -Which of the following is characteristic of a process costing system? Characteristics of a process costing system include repetitive operations, homogenous products and services, high production volume, low product flexibility, and high standardization.
Detailed explanation-3: -Answer and Explanation: (e) Use of standard costs applies to process costing but not to job costing.
Detailed explanation-4: -Option D is the correct answer Process cost accounting system is mainly used by manufacturing organizations and therefore, as part of ongoing processes, stock of work in process is only partially completed at the start or end of an accounting period.
Detailed explanation-5: -Answer and Explanation: The correct answer is c. products are heterogeneous. Process costing is not applicable to heterogeneous products because they are unique products.