A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:
A) General cost accounting system.
B) Process cost accounting system.
C) Job order cost accounting system.
D) Manufacturing cost accounting system.
E) Goods in process accounting system.

Question

Quizplus · Accepted Answer

A process cost accounting system is specifically designed for industries that produce identical or similar products in large quantities through a continuous manufacturing process. Under this system, the cost of each process is tracked separately, and the costs are then allocated to the products that pass through that process. This method provides a more accurate way of tracking costs and is commonly used in industries such as food processing, chemical manufacturing, and oil refining.

A System of Accounting in Which the Costs of Each