Process Costing Systems Are Used Only by Companies That Manufacture

question 210

True/False

Process costing systems are used only by companies that manufacture physical products; companies that provide services do not use process costing.

---

Definitions:

Social Security Rate

The percentage of income that employees and employers are required to contribute to a country's social security programs.

Federal Unemployment Tax Rate

The percentage rate at which employers are taxed by the federal government to fund the unemployment compensation program for displaced workers.

Warranty Repairs

Services to repair or replace parts of a product free of charge within a specific timeframe, as provided for under a warranty agreement.

Product Warranty Expense

The estimated cost of repairing or replacing products under warranty, recognized as an expense by a company.