In order to use process costing, the output of a processing department should be homogeneous.

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Process costing is a method of cost accounting used to determine the cost of homogeneous products produced in large quantities through a continuous process. In order to use process costing, the output of a processing department should be homogeneous, meaning that all units of output should be identical in terms of both physical characteristics and production costs. This allows the cost of production to be averaged out over all units produced, resulting in a cost per unit that is more representative of the actual production cost.

In Order to Use Process Costing, the Output of a Processing