Which of the following statement(s)is (are)correct? I.It is easy to distinguish the balance sheet of a company that uses a process costing system from that of a company that uses job-order costing
II)A process costing system requires a Work in Process account for each processing department,while a job-order costing system uses a single Work in Process account
III)Process costing systems use multiple Finished Goods Inventory accounts
A) I only
B) II only
C) II and III
D) I, II, and III

Question

Quizplus · Accepted Answer

Statement I is incorrect as it is not easy to distinguish the balance sheet of a company that uses a process costing system from that of a company that uses job-order costing. 
Statement II is correct as a process costing system requires a Work in Process account for each processing department, while a job-order costing system uses a single Work in Process account. 
Statement III is incorrect as process costing systems use a single Finished Goods Inventory account.

Which of the Following Statement(s)is (Are)correct? I