Process costing systems are generally used by companies that produce large quantities of identical items.

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Process costing systems are designed for companies that produce large quantities of identical products. Such production processes often include assembly lines, where identical products are made over and over again. This makes it easier to measure the cost of each item produced since they are all the same. Process costing is used in industries such as food processing, chemicals, and electronics.

Process Costing Systems Are Generally Used by Companies That Produce