A company should use process costing rather than job order costing if
A)production is only partially completed during the accounting period.
B)the product is produced in batches only as orders are received.
C)the product is composed of mass-produced homogeneous units.
D)the product goes through a single stage of production.

Question

Quizplus · Accepted Answer

Process costing is used when a product is composed of mass-produced homogeneous units. Job order costing is used when the product is customized or unique, and goes through various stages of production. Therefore, since the product is homogeneous, it is best for the company to use process costing.

A Company Should Use Process Costing Rather Than Job Order