All Costs of the Processes in a Process Costing System

question 77

True/False

All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

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Definitions:

Bill Of Materials

A comprehensive list detailing the raw materials, components, and assemblies required to create a product.

Materials Required

The list of all items and substances needed to complete a manufacturing process, project, or operation.

Planning Bills

A material grouping created in order to assign an artificial parent to a bill of material; also called “pseudo” bills, kitted material, or kits.

Modular Bills

A breakdown of components and assemblies needed to produce an item, organized in a hierarchical structure that supports efficient changes and updates.