Which of the Following Is Not a Characteristic of a Process

question 102

Multiple Choice

Which of the following is not a characteristic of a process cost system?

• A) Manufacturing costs are grouped by departments.
• B) The system may use several Work-in-Process accounts.
• C) The system measures costs for each completed job.
• D) The system allocates costs between completed and partially completed units within a department.

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Definitions:

Decentralization

The distribution of decision-making power away from a central authority, allowing for greater autonomy at lower levels of an organization.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Support Department Allocation Rates

Ratios or percentages used to distribute the costs of support departments to producing or service departments based on agreed-upon methods.

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.