Which of the following statements about job-order costing and process costing is TRUE?
A)Process costing uses a single work-in-process account and job-order costing uses multiple work-in-process accounts.
B)Job-order costing uses a single work-in-process account for each job and process costing uses one work-in-process account for each process.
C)Process costing is used for products that are easily separated and individually identifiable.
D)Both process costing and job-order costing use a single work-in-process account.

Question

Quizplus · Accepted Answer

Job-order costing uses a single work-in-process account for each job, which means that each job has a separate account for tracking its costs. On the other hand, process costing uses one work-in-process account for each process, which means that all products in a given process share the same work-in-process account. This helps to simplify the tracking and allocation of costs in process costing systems.

Which of the Following Statements About Job-Order Costing and Process