Which of the following is not a characteristic of a process cost system?
A) Manufacturing costs are grouped by departments.
B) The system may use several Work-in-Process accounts.
C) The system measures costs for each completed job.
D) The system allocates costs between completed and partially completed units within a department.

Question

Quizplus · Accepted Answer

The characteristic of a process cost system is to measure costs for each department or process, not for each completed job. The system tracks costs for each process or department, and these costs are then allocated to the units produced in that process or department, regardless of whether they are completed or in progress. Therefore, option C is not a characteristic of a process cost system.

Which of the Following Is Not a Characteristic of a Process