Which of the following statements is true regarding process costing?
A) Product costs are tracked and assigned to each job.
B) Product costs are tracked to particular departments and then assigned evenly to the products that pass through each department.
C) There should not be any beginning or ending work-in-process inventory.
D) The units produced by a processing department should all be different in some way or another.

Question

Quizplus · Accepted Answer

Process costing involves tracking costs by department and then assigning them evenly to the products that pass through each department. It is not based on individual jobs, so option A is incorrect. There may be beginning and ending work-in-process inventory, so option C is incorrect. The units produced by a processing department may be identical to each other, so option D is incorrect.

Which of the Following Statements Is True Regarding Process Costing