In a process cost accounting system,product costs are collected by department and transferred out as units are completed.Assigning costs between transferred out units and units that remain in process is based on equivalent unit computations.

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This statement is true. In a process cost accounting system, product costs are accumulated by department and then transferred out as completed units. Equivalent unit calculations are used to allocate costs between completed units and units that remain in process.

In a Process Cost Accounting System,product Costs Are Collected by Department