In a Process Cost System Costs Are Tracked Through a Series

question 4

True/False

In a process cost system costs are tracked through a series of connected manufacturing processes or departments rather than by individual jobs.

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Definitions:

Activity Cost Pool

A grouping of all the costs related to a particular activity in the activity-based costing method.

Activity Rate

An overhead rate in activity-based costing. Each activity cost pool has its own activity rate which is used to assign overhead to products and services.

Purchasing Department

A division within an organization responsible for acquiring goods, services, and materials necessary for its operations.

Number of Orders Processed

The total quantity of orders that have been completed and shipped to customers within a given time period.