Which of the following is not a characteristic of a process costing system?
A)A specific time period is used
B)Several Work in Process Inventory accounts are used
C)Product costs are grouped by processes,departments,or work cells
D)More suitable when customized products are manufactured

Question

Quizplus · Accepted Answer

A process costing system is used when a large volume of similar products are produced. It works well in industries like food, pharmaceuticals, and chemicals. It is not suitable when customized products are manufactured, therefore, option D is not a characteristic of a process costing system. Options A, B, and C are characteristics of a process costing system.

Which of the Following Is Not a Characteristic of a Process