In process-costing systems,all product units in any work order are assumed to consume identical amounts of conversion costs of a particular operation.

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In process-costing systems, products that are homogeneous are assumed to consume identical amounts of conversion costs in a particular operation. This means that the cost of production is averaged out over all the units produced. Therefore, the assumption is that all units in any work order consume the same amount of conversion costs.

In Process-Costing Systems,all Product Units in Any Work Order Are