Which of the following costing system is appropriate for a company that mass-produces homogeneous products (continuous flow processing)?

Question

Quizplus · Accepted Answer

Process costing is the most appropriate costing system for a company that mass-produces homogeneous products using continuous flow processing. This is because process costing calculates the average cost of each unit of output across all stages of production, which aligns with the uninterrupted and continuous nature of the production process. In contrast, job costing would be more suitable for companies that produce unique, custom-made products, while operation costing and dynamic costing are less common and applicable.

Which of the Following Costing System Is Appropriate for a Company