Which of the following is unique to a process costing system?
A) The costs for each process stay with that process until the products are completed and moved to finished goods inventory
B) Direct materials, direct labor, and manufacturing overhead are assigned to the first process only.
C) Each processing department has its own separate work in process inventory account.
D) Each processing department uses the same predetermined overhead application rate.

Question

Quizplus · Accepted Answer

Process costing systems are characterized by having separate work in process (WIP) inventory accounts for each processing department. This allows for the tracking of costs as products move through different stages of production, which is unique to process costing systems compared to other costing methods.

Which of the Following Is Unique to a Process Costing