The system where the cost of a product or service is obtained by assigning costs to masses of similar units in each department and then computing unit cost on an average basis is called

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The description given is that of a process costing system, where costs are assigned to homogeneous mass production processes and unit costs are calculated by dividing total cost by the number of units produced. This method is commonly used in industries such as chemical, pharmaceutical, and food processing, where large quantities of identical products are produced. Job costing, on the other hand, is used in industries such as construction, where each job or project is unique, and costs are assigned to each specific job. Activity-based costing is a more complex method of costing, where costs are assigned based on the activities required to produce a product or service. Inventory materials control refers to the system of managing and tracking inventory levels of raw materials and supplies.

The System Where the Cost of a Product or Service