Principles of Management Accounting week 3

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A (some) distinct difference(s) in the accounting of cost flows for a job costing versus a process costing system is (are):

a. process costing utilizes multiple work-in-process accounts, whereas job costing utilizes a single work-in-process account
b. process costing requires the calculation of equivalent units and a reconciliation of multiple work-in-process units whereas job costing requires jobs to remain in work-in-process until completion
Selected: c. both a and bThis answer is correct.
d. neither a nor b

Correct! Process costing employs multiple work-in-process accounts and requires a reconciliation of each work-in-process account and equivalent units for the period.

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