Question

Which one of the following statements is correct? Process costing systems assign costs to departments or processes for a time period. Process costing systems use periodic inventory systems. Production is continuous when a job-order costing is used to ensure that adequate quantities are on hand. Companies that produce many different products or services are more likely to use process costing systems.

Answer 1

Answer: Process costing systems assign costs to departments or processes for a time period.

Explanation:

Process costing is the costing method used for when production is done in batches or mass produced. The products are assumed to have the same cost.

For this reason therefore, process costing assigns all costs to batches which means that in a time period, costs would be assigned to departments or processes as it is assumed that all the products in the batch contributed the same cost to the department or process.