Identify which one of the following statements is true.
A)Process costing uses a single work-in process account and job-order costing uses multiple work-in-process accounts.
B)Job-order costing uses a single work-in-process account and process costing uses multiple work-in-process accounts.
C)Both process costing and job-order costing use multiple work-in-process accounts.
D)Both process costing and job-order costing use a single work-in-process account.

Question

Quizplus · Accepted Answer

In job-order costing, each job has its own unique work-in-process account, while in process costing, multiple products are produced in a continuous process and therefore share a single work-in-process account.

Identify Which One of the Following Statements Is True