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

Process Costing system involved several processes or departments under which the next department receives partially completed product from the previous department. The first department receives the raw material and it does not receive any output from other department.

Hence except the first department, each department receives output from the prior department as a partially processed product.

Hence the answer is True.