A characteristic of products that are produced in a series of steps or processes is that ________.
A) their costs are accumulated on a job cost record
B) they are homogeneous and made in large quantities
C) their costs are transferred to Finished Goods Inventory as jobs are completed
D) their costs are accounted for in one Work-in-Process Inventory account

Question

Quizplus · Accepted Answer

Products that are produced in a series of steps or processes are typically made in large quantities and are homogeneous. This is commonly seen in mass production settings, such as factories, where the same steps are repeated for each product on an assembly line. The costs of producing these products are generally accumulated in a single Work-in-Process Inventory account, and transferred to Finished Goods Inventory once the products are complete. However, the cost accumulation process may vary depending on the specific accounting system being used. Job cost records are typically associated with custom or made-to-order products, not mass-produced goods.

A Characteristic of Products That Are Produced in a Series