The use of process costing is of little benefit to a service type of operation.

Question

Quizplus · Accepted Answer

Process costing can be applied to service type of operation like healthcare or hospitality, where services are provided in a similar and repetitive manner. It helps in determining the cost per service and improving the efficiency of the process. Process costing may not be suitable for operations where services are customized for each customer, as the cost of providing the service can vary significantly.

The Use of Process Costing Is of Little Benefit to a Service