Which of the following types of costing is used for many similar products?

Question

Quizplus · Accepted Answer

Process costing is used for products that are similar in nature and are produced through a continuous process, such as in the manufacturing of chemicals, cement, or steel. This method is used to determine the cost per unit of output, and it averages the cost across all the units produced during a given period. Batch costing is used for products that are produced in batches, meaning that each batch may differ in size or specification, whereas job costing is used for custom-made or unique products, and service costing is used for services rather than products. Therefore, process costing is the best choice for the given scenario.

Which of the Following Types of Costing Is Used for Many