A process costing system is generally used by companies that produce homogeneous products.

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A process costing system is designed for companies that produce large quantities of homogeneous products, such as chemicals, beverages, or electronics. This type of system is suitable for tracking the total cost of production by assigning costs to each step of the production process. Process costing is different from job costing, which is used for custom-made products.

A Process Costing System Is Generally Used by Companies That