A company should use process costing rather than job order costing if
A) production is only partially completed during the accounting period.
B) the product is produced in batches only as orders are received.
C) the product is composed of mass-produced homogeneous units.
D) the product goes through single stage of production.

Question

Quizplus · Accepted Answer

Process costing is best used when producing homogeneous products in large quantities. This is because process costing assigns costs to each production process or department rather than to each individual job or batch. This method is more efficient in large-scale production environments where the same cost is incurred for each unit of output. Therefore, choice C is the best answer.

A Company Should Use Process Costing Rather Than Job Order