In a Process Costing System, Which of the Following Would

question 83

Multiple Choice

In a process costing system, which of the following would be TRUE?

• A) A process costing system is more expensive because it has more work-in-process accounts.
• B) There is no need to track materials to processes.
• C) There is no need to use time tickets to assign costs to processes.
• D) All of these are true.

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Definitions:

Differential Costs

The difference in total costs between two alternatives, helping in decision-making processes where alternatives are being considered.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by future actions.

Sunk Cost

Refers to money that has already been spent and cannot be recovered, which should not influence future business decisions.

Standard Cost Formula

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions, used for budgeting and cost control.