Companies that mass-produce similar products or employ a continuous production process typically use which of the following costing systems?

Question

Quizplus · Accepted Answer

Companies that mass-produce similar products or employ a continuous production process typically use a process costing system, which is designed to accumulate costs for each process or department. This system is used for measuring the costs of producing large quantities of identical or similar products. Job order costing is used for unique, customized products or services, while accumulation costing is not a commonly used term in accounting. Variable costing is a method of measuring net income that includes only variable costs, while fixed costs are treated as expenses in the period incurred.

Companies That Mass-Produce Similar Products or Employ a Continuous Production