Which of the Following Is Unique to a Process Costing

question 43

Multiple Choice

Which of the following is unique to a process costing system?

• A)Work is not started on a product until an order is received.
• B)Direct materials, direct labor and manufacturing overhead are assigned to the first department only.
• C)Costs for each process stay with that process until the goods are moved to finished goods.
• D)Each process has its own WIP account.

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Definitions:

Current Year Amount

The total financial figures, such as revenue, expenses, or profits, calculated for the company's ongoing fiscal year.

Percentage Increase

The rate of growth of a quantity, expressed as a fraction of its previous value and shown as a percentage.

Sales Data

Information related to the amount, timing, and composition of a company's sales.

Stockholders

Individuals or entities that own a share or shares of a corporation, thereby having a claim on its assets and earnings.