How does a job-costing system differ from a process-costing system? A. A process-costing system allocates indirect costs to products; a job-costing system does not allocate indirect costs to products. B. A job-costing system assigns costs to masses of similar units; a process-costing system assigns costs to distinct units. C. A job-costing system allocates indirect costs to products; a process-costing system does not allocate indirect costs to products. D. A job-costing system assigns costs to distinct units; a process-costing system assigns costs to masses of similar units.

Question

Marley Payne

Business

19 August, 19:00

How does a job-costing system differ from a process-costing system? A. A process-costing system allocates indirect costs to products; a job-costing system does not allocate indirect costs to products. B. A job-costing system assigns costs to masses of similar units; a process-costing system assigns costs to distinct units. C. A job-costing system allocates indirect costs to products; a process-costing system does not allocate indirect costs to products. D. A job-costing system assigns costs to distinct units; a process-costing system assigns costs to masses of similar units.

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Georgia Brock · Answer 1

The correct answer is B. A job-costing system assigns costs to masses of similar units; a process-costing system assigns costs to distinct units.

Explanation:

Job-costing systems are used in organizations where production is of low mass, the process process is discontinuous for heterogeneous products.

Process costing is a system that applies costs to similar products that are generally produced in large quantities and continuously through a series of production steps.