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? Why not just physical units?

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

costs?