Which of the following characteristics applies to process cost accounting and not to job order cost accounting?
A) Use of a predetermined overhead rate.
B) Identifiable lots of production.
C) Equivalent units of production.
D) Labor time ticket for each employee.
E) Use of a single Goods in Process account.

Question

Quizplus · Accepted Answer

Process cost accounting uses the concept of equivalent units of production to allocate costs in continuous production processes, unlike job order cost accounting.

Which of the Following Characteristics Applies to Process Cost Accounting