Process costing would be most likely used by a firm that produces heterogeneous products.

Question

Quizplus · Accepted Answer

Process costing is used by firms that produce homogeneous products, such as companies that produce identical units of items through a continuous process, such as chemicals or steel. For firms that produce heterogeneous products, job costing would be a more appropriate method because it allows for the tracking of costs for individual jobs or orders.

Process Costing Would Be Most Likely Used by a Firm