Which of the Following Items Is Not a Characteristic of a Process

question 93

Multiple Choice

Which of the following items is not a characteristic of a process cost system?

• A)Once production begins, it continues until the finished product emerges.
• B)The products produced are heterogeneous in nature.
• C)The focus is on continually producing similar products.
• D)When the finished product emerges, all units have exactly the same amount of materials, labour, and overhead.

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Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of completed units for inventory valuation.

Production Department

The division within a business that is charged with the manufacture of goods or the provision of services.

Materials Consumed

The direct raw materials used in the production process during a specific period.

Conversion Costs

Expenses incurred during the transformation of raw materials into finished products, including labor and overhead.