All of the following are characteristics of a process cost system except
A)the system may use several work in process inventory accounts
B)manufacturing costs are grouped by department rather than by jobs
C)the system accumulates costs per job
D)it uses a perpetual inventory system for materials, work in process, and finished goods

Question

Quizplus · Accepted Answer

A process cost system accumulates costs by department, not by individual jobs. This is in contrast to a job order costing system, where costs are accumulated for each specific job.

All of the Following Are Characteristics of a Process Cost