1) Process costing typically used for businesses that make unique : 1876967
1) Process costing is typically used for businesses that make unique goods in relatively small amounts.
2) Cost for direct materials, direct labor and Manufacturing Overhead are assigned to each job.
3) A separate Work in Process Inventory account is maintained for each process.
4) Unique or custom-made goods use a process costing system.
5) Both process costing and job costing assign costs to units as they proceed through the process.
6) Each manufacturing process will have a WIP Inventory account.
7) In a job cost system, all costs flow to a particular job.
8) Prime costs include direct labor and direct materials.
9) Conversion costs are the sum of direct labor and direct materials.
10) Indirect labor would not be a component of conversion costs.