Select the incorrect statement regarding cost flows through a process cost system.
A) The process cost system is patterned after the physical flow of products as they move through the production process.
B) The three inventory accounts used are maintained on a perpetual basis.
C) Product costs are accumulated separately by job.
D) A separate work in process account is maintained for each department or process.

Question

Quizplus · Accepted Answer

Companies use job-order costing systems when they need to know the costs of individual products or batches of products.In other words,a job-order costing system accumulates product costs for each individual job.

Select the Incorrect Statement Regarding Cost Flows Through a Process