Which of the following statements about similarities between process costing and job-order costing are true?
I. Both systems assign production costs to units of output.
II. Both systems require extensive knowledge of financial accounting.
III. The flow of costs through the manufacturing accounts is essentially the same.
A) I only.
B) I and III.
C) II and III.
D) III only.
E) I, II, and III.

Question

Quizplus · Accepted Answer

I and III are true because both process costing and job-order costing systems assign production costs to units of output and have a similar flow of costs through the manufacturing accounts. Extensive knowledge of financial accounting is beneficial for both, but not a direct similarity in how they operate.

Which of the Following Statements About Similarities Between Process Costing