Which of the following statements about processing costing is false? Process costing accumulates costs by department. Process costing assigns departmental costs uniformly to all identical units that pass through the department during a period. Process costing systems compute unit costs by department. Process costing is used when a company produces a continuous flow of units that are distinguishable from one another.

Question

Monserrat Vasquez

Business

14 November, 06:14

Which of the following statements about processing costing is false? Process costing accumulates costs by department. Process costing assigns departmental costs uniformly to all identical units that pass through the department during a period. Process costing systems compute unit costs by department. Process costing is used when a company produces a continuous flow of units that are distinguishable from one another.

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Answers (1)

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Katie Sanders · Answer 1

Option D is correct as it is false

Explanation:

Process costing is used when a company produces a continuous flow of units that are distinguishable from one another is false.

Process costing is used when a company produces goods that are indistinguishable from one another and are produced in batches. Process costing accumulates costs by department and computes equivalent units to calculate unit costs by department. Process costing is used for identical goods (homogeneous) that involve mass production.

Option D is correct