Process costing is used to calculate the cost of homogenous goods or services.

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Process costing is a costing method used in industries that produce homogenous goods or services, such as oil refining, chemical production, or food processing. It calculates the average cost per unit by dividing the total cost of production by the number of units produced. This method is different from job costing, which is used for goods or services with unique characteristics or features.

Process Costing Is Used to Calculate the Cost of Homogenous