Which of the following statements regarding a process costing system is false?
A) Use of a process costing system would be appropriate for a company that manufactures luxury yachts.
B) Unit costs are computed for each department.
C) The number of equivalent units for a period takes into account the stage of completion of ending work in process inventory.
D) Unit cost is determined for a designated period of time.

Question

Quizplus · Accepted Answer

Use of a process costing system would not be appropriate for a company that manufactures luxury yachts as each yacht is typically unique and not mass-produced. Process costing is typically used for products that are mass-produced and identical or similar in nature.

Which of the Following Statements Regarding a Process Costing System