All of the following statements are correct when referring to process costing except:

A. Costs are accumulated by department.

B. A process costing system has the same basic purposes as a job-order costing system.

C. Units produced are indistinguishable from each other.

D. Process costing would be appropriate for a movie studio that makes a handful of hit movies per year.

E. Process costing would be appropriate for a breakfast cereal manufacturer

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