Which of the following statements is true?
A) In a job-costing system, average production cost is calculated for all units produced.
B) In a process-costing system, each unit uses approximately the same amount of resources.
C) In a job-costing system, overheads are allocated to all units equally.
D) In a process-costing system, individual jobs use different quantities of production resources.

Question

Quizplus · Accepted Answer

In a process-costing system, each unit uses approximately the same amount of resources as they are produced in large quantities and undergo the same process. Option A is incorrect as in job costing system, each job has its unique characteristics and production cost cannot be the same. Option C is also not correct since in job costing system, overheads are allocated based on actual usage by each job. Option D is also incorrect as in a process costing system, each unit uses approximately the same amount of production resources.

Which of the Following Statements Is True