Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments?

Question

Quizplus · Accepted Answer

Process costing is most applicable in continuous mass-production manufacturing environments. This is because in these environments, products are manufactured in large quantities and are identical to each other. Process costing accumulates costs by process or department, rather than by individual product or job. This enables the tracking of costs throughout the production process and helps to identify inefficiencies or areas for improvement. Standard costing and actual costing are better suited for environments where products are manufactured in smaller quantities or are customized. Job order costing is best suited for environments where products are unique and require a specific set of resources to manufacture.

Which Cost Accumulation Procedure Is Most Applicable in Continuous Mass-Production