Costing systems that are used for costing like or similar units of products in mass production are called
A)inventory-costing systems.
B)job-costing systems.
C)process-costing systems.
D)weighted-average costing systems.
E)bulk costing systems.

Question

Quizplus · Accepted Answer

Process-costing systems are used for costing similar units of products in mass production, where the products go through a series of processes and each unit receives the same amount of materials, labor, and overhead costs. Therefore, a process-costing system is the best choice for costing like or similar units of products in mass production. Inventory-costing systems, job-costing systems, and weighted-average costing systems are used for different types of costing. Bulk costing systems are not a commonly used term in the field of accounting and costing.

Costing Systems That Are Used for Costing Like or Similar