Multiple Choice
Which of the following differs between job costing and process costing?
16
views
4. Merchandising Operations
Service Company vs. Merchandising Company
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is uncharacteristic of process costing?
A
Costs are accumulated by job.
B
Used commonly in industries like chemicals and oil refining.
C
Costs are assigned to processes or departments.
D
Production is continuous and homogeneous.
Verified step by step guidance1
Understand the concept of process costing: Process costing is a method used to allocate costs in industries where production is continuous and the products are homogeneous, such as chemicals, oil refining, and food processing.
Identify the characteristics of process costing: Costs are assigned to processes or departments rather than individual jobs, and production is typically continuous and uniform.
Compare the options provided in the question: Analyze each option to determine whether it aligns with the characteristics of process costing.
Focus on the option 'Costs are accumulated by job': This is uncharacteristic of process costing because accumulating costs by job is a feature of job-order costing, not process costing.
Conclude that the correct answer is the option that does not align with process costing: 'Costs are accumulated by job' is the uncharacteristic feature in this context.
Related Videos
Related Practice
Service Company vs. Merchandising Company practice set
Problem sets built by lead tutorsExpert video explanations