A process costing system accounts for product costs
A) for a specific period of time.
B) almost always in a single Work in Process Inventory account.
C) without regard to the process that created the cost.
D) for specific orders.

Question

Quizplus · Accepted Answer

A process costing system accounts for product costs for a specific period of time, typically over a certain production cycle or accounting period. The costs are accumulated and assigned to the products produced during that period. The costs may be tracked in multiple work-in-process inventory accounts if there are multiple stages or departments within the production process. The system is designed to allocate costs based on the process that created the cost, rather than for specific orders.

A Process Costing System Accounts for Product Costs