In a process costing system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

Question

Quizplus · Accepted Answer

This is true. In a process costing system, each department receives input from the previous department as a partially processed product, which it then further processes before passing it on to the next department. The exception to this is the first department, which receives raw materials and converts them into a partially processed product that is then passed on to the next department.

In a Process Costing System, with the Exception of the First