In companies that produce masses of identical or similar units of output and consequently use process-costing systems, it is relatively easy to set standards and use a standard cost as the cost per equivalent unit.

Question

Quizplus · Accepted Answer

In companies that use process-costing systems, it is relatively easy to set standards and use a standard cost as the cost per equivalent unit, as each unit is largely the same as the next.

In Companies That Produce Masses of Identical or Similar Units