Which of the following is not a characteristic of a process cost system?
A)Manufacturing costs are grouped by departments or by process.
B)The system may use several work in process accounts.
C)The system measures costs for each completed job.
D)The system provides useful product cost information for decision making.

Question

Quizplus · Accepted Answer

A process cost system measures costs for each process or department through which a product passes, rather than for each individual job. Choices A, B, and D are characteristics of a process cost system, making C the correct answer as it describes a characteristic of a job order costing system, not a process cost system.

Which of the Following Is Not a Characteristic of a Process