Which statement is characteristic of a process costing system?
A)It is more expensive because it has more work-in-process accounts.
B)There is no need to track materials to processes.
C)There is no need to use time tickets to assign costs to processes.
D)It is used for businesses that produce unique products.

Question

Quizplus · Accepted Answer

Process costing systems typically do not require the use of time tickets to assign costs to processes because costs are allocated based on average costs for each process, rather than tracking individual labor hours or materials to specific jobs or products. This is in contrast to job costing systems, where time tickets are crucial for assigning specific labor costs to individual jobs or products.

Which Statement Is Characteristic of a Process Costing System