The process cost accounting system is used when homogenous products are manufactured in a continuous process.

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Quizplus · Accepted Answer

The statement is true. Process cost accounting is used in industries where goods are produced through continuous processes, such as oil refineries, chemical manufacturing, and food processing facilities. The system facilitates the allocation of costs uniformly over each unit of output, which results in the determination of the cost per unit. It is different from job order costing, which is used in industries that produce unique products or services, such as printing companies and custom furniture makers.

The Process Cost Accounting System Is Used When Homogenous Products