Select the incorrect statement regarding cost flows through a process costing system.
A) The process costing system is patterned after the physical flow of products as they move through the production process.
B) The three inventory accounts used are maintained on a perpetual basis.
C) Product costs are accumulated separately by job.
D) A separate Work in Process account is maintained for each department or process.

Question

Quizplus · Accepted Answer

Product costs are not accumulated separately by job in a process costing system. Instead, they are accumulated by process or department.

Select the Incorrect Statement Regarding Cost Flows Through a Process