The UVW Manufacturing Company produces a single uniform product throughout the year.Which of the following product costing systems should be used by UVW?

Question

Quizplus · Accepted Answer

Process costing is the best choice for UVW Manufacturing Company as it produces a single uniform product throughout the year. Process costing is used when the production is continuous, and the product is identical or similar in nature. It assigns costs to each process or department, and the total cost is divided by the number of units produced during that period. This method is well-suited for companies that produce a single product continuously or in large quantities. Job-order costing, operation costing, and batch costing are not appropriate for UVW Manufacturing Company as they are used in situations where there are different products, different operations, or different batches.

The UVW Manufacturing Company Produces a Single Uniform Product Throughout