Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Question

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Process-costing systems are designed for mass-produced products that are usually made through a continuous series of production processes. The costs incurred during each process are recorded and the total cost is allocated to the finished product. This allows manufacturers to determine the cost of each unit produced and to make pricing decisions accordingly. Therefore, the statement is true.

Process-Costing Systems Apply Costs to Like Products That Are Usually