When identical or similar units of products or services are mass-produced rather than processed as individual jobs,managers use process costing to calculate an average production cost for all units produced.

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This statement is true. Process costing is a cost accounting method used in situations where large quantities of identical or similar products or services are produced through a continuous process. The method calculates the average cost of production for all units produced in a given period of time. This is in contrast to job costing, which tracks the cost of individual units produced as separate jobs.

When Identical or Similar Units of Products or Services Are