A Process Costing System Is Used by Companies That Manufacture

question 117

True/False

A process costing system is used by companies that manufacture large amounts of similar products or liquid products.

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Definitions:

Double Rule

A method used in accounting to draw attention to totals or end of reports by placing two lines beneath them for emphasis.

Total

The aggregate amount or sum of individual items or elements in a set or group.

Closing Journal Entries

The entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.

Adjusting Journal Entries

Entries made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.