A process costing system differs from a job order costing system in that:
A)There is no need for overhead application rates in process costing systems.
B)Process costing systems are used primarily in service industries,whereas job order costing systems are used in manufacturing operations.
C)Per-unit costs are not computed in process costing systems.
D)Process costing systems are used when production involves large volumes of standardized products,whereas job order costing systems are used when each job or batch of products is uniquely different.

Question

Quizplus · Accepted Answer

Process costing systems are used when production involves large volumes of standardized products. In such cases, it is not necessary to track the cost of each individual unit or batch of products, as they are all essentially the same. On the other hand, job order costing systems are used when each job or batch of products is uniquely different, requiring separate tracking of costs for each one.

A Process Costing System Differs from a Job Order Costing