Which of the following statements is false? A. In job-order costing, costs are a

Question

Which of the following statements is false?

A. In job-order costing, costs are accumulated by job order.

B. In process costing, costs are accumulated by department.

C. In process costing, the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity.

D. In process costing, the total cost of each unit is found by dividing the total factory costs by the number of units completed.

E. In job-order costing, the unit cost is found by dividing the job's total cost by the job's total units.

Explanation / Answer

In job order costing costs are collected by jobs and determined by dividing collected cost by output. So option A & D are correct.

In process costing costs are accumulated by departments and cost per unit of a department is found by dividing a period's manufacturing costs by the output. So option C is also correct

In Process costiing , the total cost of each unit is found by dividing the total cost of a process in a period by the no of equivalent completed units produced during the period. It is not found by dividing the total factory costs by total no of units produced as all the units may not g through all the processes.

So option D is false

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