DELAWARE COMPANY - 307 COST ACCOUNTING

Required

1.Answer the following questions:

a)What is process costing?What are the typical characteristics of a company that should use a process costing system?

b)What is meant by the term "continuous processing"?Give an example.

c)What are the primary differences between job costing and process costing?

d)What is an equivalent unit?Why is it necessary in process costing?Why don't we use equivalent units in job costing?

e)Why is it necessary to compute separate per-unit costs for materials and conversion costs?