Questions:
1. Process cost system is not applicable to paper mills and textile mills.
2. In process costing, cost unit is a process.
3. Normal loss in a process is not avoidable.
4. Normally normal loss in a process is borne by good units while abnormal loss is valued and is shown in the process accounts.
5. In process costing, costs are compiled process wise.
6. Process costing is generally used in small scale industries.
7. Normal loss is finally transferred to the Costing Profit and Loss Account.
8. Equivalent units are computed when some units remain incomplete at the end of a particular period.
9. Waste does not have any realizable market value.
10. In process costing, cost per unit is the average cost.