Which of the following statements is true? A. In a job-costing system, average production cost is calculated for all units produced. B. In a job-costing system, overheads are allocated to all units equally. C. In a process-costing system, each unit uses approximately the same amount of resources. D. In a process-costing system, individual jobs use different quantities of production resources.

Question

Kareem

Business

10 July, 08:24

Which of the following statements is true? A. In a job-costing system, average production cost is calculated for all units produced. B. In a job-costing system, overheads are allocated to all units equally. C. In a process-costing system, each unit uses approximately the same amount of resources. D. In a process-costing system, individual jobs use different quantities of production resources.

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Answers (1)

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Eliana Barr · Answer 1

C. In a process-costing system, each unit uses approximately the same amount of resources.

Explanation:

Option A is wrong because average production cost cannot be calculated for all units produced in a job-costing system. It is calculated from overhead allocation.

Option B is incorrect because overhead cannot be allocated to all units equally in the job costing method.

Option D is also false because, in a job costing system, individual jobs use different quantities of production resources. On the other hand, the process costing system uses the same amount of resources for each unit. Therefore, option C is correct.