A process costing system is highly desirable when a company mass produces identical goods.

Question

Quizplus · Accepted Answer

A process costing system is designed for industries that produce large quantities of identical or homogeneous products through a continuous flow of production. This allows for the standardized allocation of production costs across all units produced, resulting in accurate costing information for management. Examples of industries that use process costing include oil refineries, chemical manufacturers, and food processors.

A Process Costing System Is Highly Desirable When a Company