Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?
A) job-order costing
B) process costing
C) sequential costing
D) parallel costing

Question

Quizplus · Accepted Answer

Process costing is used in industries where homogeneous products are produced in large quantities, such as the food, chemical, and steel industries. It involves dividing the production process into separate stages, and assigning costs to each stage based on the total cost of the inputs used in that stage. This method is well-suited for companies that produce identical products on a continuous basis.

Manufacturers That Produce a Large Number of Homogeneous Products Are