Which of the following characteristics applies to process cost accounting but not to job order cost accounting?
A) Use of a predetermined overhead rate.
B) Identifiable lots of production.
C) Equivalent units of production.
D) Labor time ticket for each employee.
E) Use of a single Goods in Process Inventory account.

Question

Quizplus · Accepted Answer

Equivalent units of production are specific to process cost accounting, which deals with mass production of similar items where costs are averaged over units. Job order costing, in contrast, tracks costs for individual jobs or batches, making the concept of equivalent units irrelevant.

Which of the Following Characteristics Applies to Process Cost Accounting