Which statement is true concerning process cost systems?
A)Each Work in Process account represents the cost of a different product.
B)The cost of each unit of product is determined after each unit is produced.
C)Product costs are determined when the products are sold.
D)Product costs are summarized on production cost reports.

Question

Quizplus · Accepted Answer

Process cost systems summarize product costs on production cost reports, which allow managers to analyze the costs associated with producing each product. Work in Process accounts in a process cost system represent the cost of all products currently in production, not just one specific product. The cost of each unit of product is typically determined using average costs calculated at the end of the production period, not after each individual unit is produced. Additionally, product costs are determined when the products are completed, not sold.

Which Statement Is True Concerning Process Cost Systems