Question

In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service. In a process-costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units. True or False?

Answer 1

In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service. In a process-costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units.

Step-by-step explanation:

In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service, which means that costs are traced to individual products or services. This is true.

In a process-costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units. This is also true.

Therefore, the statement that costs are assigned to a distinct unit, batch, or lot of a product or service in a job-costing system, and that the cost of a product or service is obtained by using broad averages in a process-costing system, is True.