Question

Which of the following statements regarding process costing is​ TRUE? A. Process costing is used for products that are easily separated and individually identifiable. B. The unit cost for process costing is found by accumulating the costs for all the manufacturing departments and dividing the total by the number of units produced. C. The processminuscosting approach does not distinguish between individual units of product. D. Processminuscosting systems use a single WorkminusInminusProcess Inventory account.

Answer 1

Answer:

Statement A - false

Statement B- true

Statement  C- true

Statement  D- false

Explanation:

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process is referred to as Process costing.

In Process costing, costs are assigned to products, usually in a large batch, which might include an entire month's production. Costs are eventually allocated to individual units of product.

Process costing is a method of assigning costs to units of production in companies producing large quantities of homogeneous products.

a. False- When a single product is made on a continuous basis, Process costing is used  .  The units produced are identical, i.e homogeneous in nature.

b. True- In the  process costing is a method, the cost per unit is obtained by first accumulating costs for the entire period for each process or department, and they divide the accumulated costs by the number of units produced (tons, pounds, gallons, or feet) in that process or department.

c. True- Process minus costing approach  is a method of assigning costs to units of production in companies producing large quantities of homogeneous products. Thus, the approach does not distinguish between individual units of product.

d. False - Process minus costing systems rather uses a  multiple Work minusInminus Process Inventory account because  it has a Work in Process Inventory account for each department or process.