Which of the following statements regarding a process cost system is
A) Use of a process cost system would be appropriate for a company that manufactures luxury yachts.
B) Unit costs are computed for each department.
C) The number of equivalent whole units for a period takes into account the stage of completion of ending work in process inventory.
D) Unit cost is determined for a designated period of time.

Question

Quizplus · Accepted Answer

Companies that use process costing systems normally make products in mass quantities using continuous processes.A company that makes luxury yachts would more likely use a job order or hybrid costing system.

Which of the Following Statements Regarding a Process Cost System