Process cost accounting is appropriate:

Question

Quizplus · Accepted Answer

Process cost accounting is suitable for companies that have continuous operations and produce standard types of products. This method is commonly used in industries such as oil refining, chemical processing, and beverages, where products are manufactured in large volumes and have very little variation.

Option B is incorrect because batch production is managed using job costing or job order costing. Option C is incorrect because custom production requires job costing or activity-based costing methods. Option D is incorrect because even companies that produce only one product can use either job costing or process costing depending on the nature of their operations.

Process Cost Accounting Is Appropriate