What are the characteristics of process costing?
A)wide variety of distinct products
B)costs accumulated by job
C)unit costs computed by dividing total job costs by number of units produced for that job
D)homogeneous products

Question

Quizplus · Accepted Answer

Process costing is used when producing large quantities of homogeneous products, where costs are accumulated by process rather than by job. There is usually no need to compute unit costs for each job since the products are essentially identical. Choices A and B describe characteristics of job costing, while choice C is not applicable in process costing.

What Are the Characteristics of Process Costing