Most Process Costing Systems Use Weighted Average Process Costs

question 22

Multiple Choice

Most process costing systems use weighted average process costs.Which of the following is a characteristic of weighted average process costs systems?

• A)These systems account only for costs incurred during the current period.
• B)These systems are not appropriate for environments that involve mass production.
• C)The weighted average process cost system is required by GAAP.
• D)These systems do not distinguish between the costs from the prior period and costs incurred during the current period.
• E)None of the above is a characteristic of weighted average process costs systems.

---

Definitions:

NASA

The United States government agency responsible for the nation's civilian space program and for aeronautics and aerospace research.

Shuttle Service

A shuttle service is a public or private transport service that offers frequent trips between two fixed points, often used in airport or hotel transfers.

Fly By Night

A term describing businesses or individuals that appear transient, unreliable, or not committed to long-term obligations.

Output Levels

The quantity of goods or services produced by a company or an economic system within a specific period.