Which of the following is not a characteristic of a process costing system?
A)The costs incurred in each process are accumulated in separate Work-in-Process Inventory accounts.
B)It is suitable for mass-produced operations.
C)Costs are accumulated separately for each unit of production as it moves through the factory.
D)The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.

Question

Quizplus · Accepted Answer

In process costing, costs are accumulated for each process, not for each unit of production. Therefore, choice C is not a characteristic of a process costing system.

Which of the Following Is Not a Characteristic of a Process