________ costing is used by a business to price homogeneous products.

Question

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Process costing is used by businesses to determine the cost of making homogeneous products, which are products that are virtually identical to each other. This method is particularly useful in industries that create mass-produced goods, such as food and beverage, chemicals, and textiles. Process costing assigns direct costs (such as the cost of raw materials and labor) and indirect costs (such as rent and utilities) to the entire production process, then divides the total cost by the number of units produced to arrive at a unit cost. This unit cost is then used to determine an appropriate price for the product.

________ Costing Is Used by a Business to Price Homogeneous