Question

All of the following are characteristics of a process cost system except a.the system accumulates costs per job b.the system emphasizes time periods rather than the time it takes to complete a job c.the system may use several work in process inventory accounts d.manufacturing costs are grouped by department rather than by jobs

Answer 1

Answer:

a.the system accumulates costs per job

Explanation:

It is a methodology in accounting that involves allocating cost of units to each product in a company that produces large quantities of similar products. Process cost is used to determine the actual cost of a product at different stages of production. It helps to trace and determine direct cost and also helps to monitor how and where money is being spent during the process of production and distribution.

Answer 2

Answer:

The correct answer is letter "A": the system accumulates costs per job.

Explanation:

Process cost accounting is an approach that allocates the costs of materials, direct labor, and overhead to the business processes not to jobs. Process cost accounting aims to allocate those costs to value the final goods in an inventory. This method is mostly used by firms with undifferentiated mass-production.