Multiple Choice
A process cost system would be used for all of the following products except:
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4. Merchandising Operations
Service Company vs. Merchandising Company
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is most characteristic of a process operations (process costing) system rather than a job order costing system?
A
Costs are accumulated by individual jobs
B
Custom manufacturing of unique products
C
Production of identical units in a continuous flow
D
Each product is significantly different from the others
Verified step by step guidance1
Understand the difference between process costing and job order costing systems. Process costing is used for mass production of identical units in a continuous flow, while job order costing is used for custom manufacturing of unique products.
Analyze the characteristics of process costing. It accumulates costs by department or process rather than by individual jobs, as the production is continuous and standardized.
Review the options provided in the problem. Identify which option aligns with the characteristics of process costing, such as production of identical units in a continuous flow.
Eliminate options that describe job order costing characteristics, such as costs accumulated by individual jobs or custom manufacturing of unique products.
Select the option that best represents process costing, which is 'Production of identical units in a continuous flow.'
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