Which is the best cost accumulation procedure to use for continuous mass production of like units?

Question

Quizplus · Accepted Answer

Process costing is the best choice for continuous mass production of like units as it accumulates costs by process or department, rather than by individual jobs or products. This method is suited for businesses that produce large quantities of identical items, such as food, pharmaceuticals, and chemicals. The costs of each process, such as materials, labor, and overhead, are pooled together, and the total is then divided by the number of units produced to determine the cost per unit. This allows for efficient and accurate cost calculation, which is essential for effective cost management and pricing decisions.

Which Is the Best Cost Accumulation Procedure to Use for Continuous