Process costing systems are suitable for firms that produce
i. homogeneous products.
ii. heterogeneous products.
iii. individual products.
iv. repetitive products.
A) i and iii
B) i and iv
C) ii and iv
D) i and ii

Question

Quizplus · Accepted Answer

Process costing systems are best suited for firms that produce repetitive, homogeneous products, which is covered in option i and iv. Thus, the correct answer is i and iv, which are covered under choice letter B.

Process Costing Systems Are Suitable for Firms That Produce