A process costing system is suitable for a company with a large volume of standard products produced on a relatively continuous basis,for example,golf balls or petroleum.

Question

Quizplus · Accepted Answer

A process costing system is designed for companies that produce large quantities of homogeneous products on a continuous basis. Examples of such products could be gasoline, flour, or nails. Golf balls also fall under this category since they are produced in large quantities on a continuous basis with little customization. Therefore, option A is correct.

A Process Costing System Is Suitable for a Company with a Large