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 process costing systems as they incur similar costs in producing each unit of the product. Process costing involves allocating the total cost of a process over the total number of units produced. Job order costing is used when products are produced individually, and each product requires unique components, making it more applicable to custom-manufacturing or service-oriented businesses.

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