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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A process costing system assigns costs to masses of similar units in each department and computes unit cost on an average basis. This method is commonly used in industries such as oil refining, chemical processing, and food production, where large quantities of homogeneous products are produced. Job costing, on the other hand, is used when a product or service is unique or custom-made, such as construction projects or legal services. Activity-based costing is a more advanced costing method that considers the specific activities that consume resources and assigns costs based on the activities performed. An inventory materials control system is a system that focuses on managing inventory levels and ensuring that materials are available when needed for production.

The System Where the Cost of a Product or Service