Identify Which One of the Following Statements Regarding Process Costing

question 109

Multiple Choice

Identify which one of the following statements regarding process costing is true.

• A) The unit cost for inventory purposes is calculated by accumulating the costs of all processing departments and dividing the total costs by the number of units produced.
• B) Individual jobs exist in process costing.
• C) Process- costing systems are usually simpler than job- order costing systems.
• D) The process- costing approach does not distinguish among individual units of product.

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Definitions:

Normal Balances

The side (debit or credit) on which increases to an account are recorded, depending on the type of account.

Total Assets

The sum of all assets owned by a company, reflected on the balance sheet, representing both current and non-current assets.

Cash Payment

The act of settling a debt or transaction by transferring money to another party.

Cash Account

A financial account that records cash transactions including receipts and payments.