A characteristic of a process cost accounting system is:
A)Costs are accumulated by order.
B)Work in process inventory is restated in terms of equivalent production.
C)It is used by a company manufacturing custom machinery.
D)None of these is correct.

Question

Quizplus · Accepted Answer

A characteristic of a process cost accounting system is that work in process inventory is restated in terms of equivalent production. This means that the costs are not accumulated by order, as in job order costing, and it is not necessarily used by a company manufacturing custom machinery.

A Characteristic of a Process Cost Accounting System Is