Which of the following statements is false?
A) In job-order costing, costs are accumulated by job order.
B) In process costing, costs are accumulated by department.
C) In process costing, the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity.
D) In process costing, the total cost of each unit is found by dividing the total factory costs by the number of units completed.
E) In job-order costing, the unit cost is found by dividing the job's total cost by the job's total units.

Question

Quizplus · Accepted Answer

In process costing, the total cost of each unit is not simply found by dividing the total factory costs by the number of units completed. Instead, it involves allocating the costs to batches of products and then calculating the cost per unit based on the production activity in each department or process stage. This may involve complex calculations to account for work in process at the beginning and end of the period, making statement D false.

Which of the Following Statements Is False