Process costing systems are commonly used by companies that produce a large volume of standardized units on a continuous basis.

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Process costing systems are designed for companies that produce large volumes of identical or similar products on an ongoing basis. This includes industries like chemical processing, oil refining, and food manufacturing. In process costing, costs are assigned to each unit of production based on average costs incurred in the production process. This approach is well-suited to standardized production environments with high volumes of output.

Process Costing Systems Are Commonly Used by Companies That Produce