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

Process cost systems are used when producing homogeneous products, where each unit produced is virtually identical to the next. Therefore, products in a process cost system are not heterogeneous in nature. Choices A, C, and D are all characteristics of a process cost system.

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