Which costing system is generally used by companies who mass-produce homogeneous products,such as a petroleum refining company?

Question

Quizplus · Accepted Answer

The process costing system is generally used by companies that mass-produce homogeneous products such as a petroleum refining company. In process costing, costs are accumulated by each process or department, and the cost of each unit of product is determined by dividing the total cost of the process or department by the number of units produced. This system is suitable for mass production because it simplifies the cost allocation process and provides accurate costing information.

Which Costing System Is Generally Used by Companies Who Mass-Produce