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31 July, 00:47

A process costing system:

A. uses a separate Work-in-process account for each type of product produced.

B. does not use a Work-in-process account in any form.

C. uses a separate Work-in-process account for each processing department.

D. uses a single Work-in-process account for the entire company.

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  1. 31 July, 01:14
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    C. uses a separate Work-in-process account for each processing department.

    Explanation:

    A process costing system -

    The term of process costing system is used in the method of cost account.

    Where it refers to the method to assign and collect the cost of the goods and services manufactured per unit, is referred to as the process costing system.

    The method is very efficient and useful during the production of goods and services in large quantities.

    The method is appropriate for different department, where each department is assigned a separate processing method i. e., if in company there are three major departments, then each department is assigned a specific process costing system, which is specific for a specific department.

    Hence, from the question,

    The correct answer is c.
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