Which cost accounting processes would be most appropriate for firms that mass-produce large quantities of similar or homogeneous products?
A)DuPont costing
B)Process costing
C)Job-order costing
D)Common-size costing

Question

Quizplus · Accepted Answer

Process costing is the most appropriate cost accounting process for firms that mass-produce large quantities of similar or homogeneous products, as it calculates average costs for each unit produced. This method is used when a product passes through multiple production stages, with each stage adding value to the product. DuPont costing is used for analyzing the return on equity, job-order costing is used for customized or unique products, and common-size costing is used to compare financial statements of companies of different sizes.

Which Cost Accounting Processes Would Be Most Appropriate for Firms