Identify which one of the following statements is true.
A) Both process costing and job- order costing use multiple work- in- process accounts.
B) Job- order costing uses a single work- in- process account and process costing uses multiple work- in- process accounts.
C) Process costing uses a single work- in process account and job- order costing uses multiple work- in- process accounts.
D) Both process costing and job- order costing use a single work- in- process account.

Question

Quizplus · Accepted Answer

In job-order costing, a single work-in-process account is used because costs are accumulated for each job individually. In process costing, multiple work-in-process accounts are used because costs are accumulated for each process or department.

Identify Which One of the Following Statements Is True