Which of the following is not a characteristic of a process cost system?
A) Manufacturing costs are grouped by departments.
B) The system may use several work in process accounts.
C) The system measures costs for each completed job.
D) The system allocates costs between completed and partially completed units within a department.

Question

Quizplus · Accepted Answer

A process cost system measures costs for each department, not for each completed job. The system is used in industries such as chemicals, food processing, and oil refining where a large volume of similar products are produced. Costs are accumulated and assigned to each department or process. The system may use multiple work in process accounts to track costs at various stages of completion within each department. Costs are allocated between completed and partially completed units within each department.

Which of the Following Is Not a Characteristic of a Process