Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

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Process costing is used for products that are produced in mass quantities through a continuous process, where each unit receives similar inputs. This method is commonly used in industries such as chemical, food and beverage, and pharmaceutical manufacturing. The aim of process costing is to determine the average cost per unit of the product, which is calculated by dividing the total cost of production by the total number of units produced.

Process Costing Is Used for Products Produced in Mass Quantities