Question & Answer: Which of the following statements is correct regarding job order and process costing systems?…..

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Which of the following statements is correct regarding job order and process costing systems?

A : Cost of goods sold is not used in a job-order cost system.

B : A process cost accounting system is appropriate for unique products that are produced in batches or jobs.

C : A job-order cost system and a process cost system are two alternative methods for valuing inventories.

D : A job-order cost system is most appropriate when a large volume of uniform products are produced.

Expert Answer

 

Answer is Option A) Cost of goods sold is not used in a job order costing system.

Explanation:

 

 

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