Answer:
Statement A - false
Statement B- true
Statement C- true
Statement D- false
Explanation:
An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process is referred to as Process costing.
In Process costing, costs are assigned to products, usually in a large batch, which might include an entire month's production. Costs are eventually allocated to individual units of product.
Process costing is a method of assigning costs to units of production in companies producing large quantities of homogeneous products.
a. False- When a single product is made on a continuous basis, Process costing is used . The units produced are identical, i.e homogeneous in nature.
b. True- In the process costing is a method, the cost per unit is obtained by first accumulating costs for the entire period for each process or department, and they divide the accumulated costs by the number of units produced (tons, pounds, gallons, or feet) in that process or department.
c. True- Process minus costing approach is a method of assigning costs to units of production in companies producing large quantities of homogeneous products. Thus, the approach does not distinguish between individual units of product.
d. False - Process minus costing systems rather uses a multiple Work minusInminus Process Inventory account because it has a Work in Process Inventory account for each department or process.
