The process costing system is useful to managers when there are masses of identical or similar units of a product or service.

Question

Quizplus · Accepted Answer

Process costing is most useful for businesses that produce large quantities of identical or similar units of a product or service. This is because the system averages the cost of each unit in the production process, making it easier for managers to determine the cost per unit and make decisions about pricing and production levels. Therefore, option A is correct.

The Process Costing System Is Useful to Managers When There