A company should use process costing, rather than job costing, if:
A) production is only partially completed during the accounting period.
B) the product is manufactured in batches only as orders are received.
C) the product is composed of mass-produced homogeneous units.
D) the product goes through several steps of production.

Question

Quizplus · Accepted Answer

Process costing is used for mass-produced homogeneous products, where costs are averaged over all units.

A Company Should Use Process Costing, Rather Than Job Costing