Which of the following statements regarding a process cost system is false?
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

A process cost system would not be appropriate for a company that manufactures luxury yachts as each yacht is unique and requires a customized approach to production. Process cost systems are better suited for products that are homogeneous, such as cereal or paint.

Which of the Following Statements Regarding a Process Cost System