Which of the following items is NOT a characteristic of a process cost system?
A)Once production begins, it continues until the finished product emerges.
B)The products produced are heterogeneous in nature.
C)The focus is on continually producing similar products.
D)When the finished product emerges, all units have exactly the same amount of materials, labour, and overhead.

Question

Quizplus · Accepted Answer

A process cost system is designed for producing homogeneous products, where the focus is on continually producing similar products. Once production begins, it continues until the finished product emerges, and all units have the same amount of materials, labor, and overhead. Therefore, option B is not a characteristic of a process cost system since it states that the products are heterogeneous in nature.

Which of the Following Items Is NOT a Characteristic of a Process