Which of the following is unique to a process costing system?
A)Work is not started on a product until an order is received.
B)Direct materials, direct labor and Manufacturing Overhead are assigned to the first department only.
C)Costs for each process stay with that process until the goods are moved to Finished Goods Inventory.
D)Each process has its own WIP account.

Question

Quizplus · Accepted Answer

Each process in a process costing system has its own WIP account to accumulate costs specific to that process. This is not unique to other costing systems, making D the correct answer. Choices A, B, and C are not unique to a process costing system.

Which of the Following Is Unique to a Process Costing