Question

In a process costing system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

A. True.
b. False.

Answer 1

A. True.

Step-by-step explanation:

Process costing system: It is a system cost accounting, wherein all the direct and indirect cost related to manufacturing are collected and assigned at the end of an accounting period. This process is used for the manufacturing of large quantity of products and therefore, each department receives output from the prior department as a partially processed product, which is called work in progress product and finally at the end it become finished product to be sold at market. Example of the process costing is Brick manufacturing company, juice bottling plant, etc.