Companies that use a series of repetitive manufacturing processes to produce standardized products should use a process cost accounting system.

Question

Quizplus · Accepted Answer

A process cost accounting system is designed for companies that use repetitive manufacturing processes and produce standardized products. This system tracks the costs associated with each production step or process, and assigns these costs to the units produced. This allows for an accurate calculation of the cost of goods sold and the cost of inventory. Therefore, companies that use a series of repetitive manufacturing processes to produce standardized products should use a process cost accounting system.

Companies That Use a Series of Repetitive Manufacturing Processes to Produce