Question

Which of the following statements is​ true? A. In a​ job-costing system, average production cost is calculated for all units produced. B. In a​ job-costing system, overheads are allocated to all units equally. C. In a​ process-costing system, each unit uses approximately the same amount of resources. D. In a​ process-costing system, individual jobs use different quantities of production resources.

Answer 1

Answer:

C. In a​ process-costing system, each unit uses approximately the same amount of resources.

Explanation:

Option A is wrong because average production cost cannot be calculated for all units produced in a job-costing system. It is calculated from overhead allocation.

Option B is incorrect because overhead cannot be allocated to all units equally in the job costing method.

Option D is also false because, in a job costing system, individual jobs use different quantities of production resources. On the other hand, the process costing system uses the same amount of resources for each unit. Therefore, option C is correct.