Which statement is true concerning process cost systems?

Question

Quizplus · Accepted Answer

Process cost systems use production cost reports to summarize the cost of products produced during a specific period. Each work in process account represents the cost of the same product, rather than different products. The cost of each unit of product is determined by dividing the total cost of production by the number of units produced, and product costs are determined before the products are sold, as they are needed for pricing decisions.

Which Statement Is True Concerning Process Cost Systems