Large manufacturing plants, such as chemical, food, and tire manufacturers, typically use process costing.

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Process costing is commonly used in large manufacturing plants where products are produced in batches or in a continuous flow, such as chemical, food, and tire manufacturers. This method assigns costs to each stage of the production process and calculates the cost per unit based on the total cost incurred during the process.

Large Manufacturing Plants, Such as Chemical, Food, and Tire Manufacturers