Process costing is normally used when:
A) large numbers of different products are manufactured.
B) large numbers of nearly identical products are manufactured.
C) small numbers of nearly identical products are manufactured.
D) the fixed costs of manufacturing exceed the variable cost of manufacturing.

Question

Quizplus · Accepted Answer

Process costing is best used when large numbers of nearly identical products are being manufactured. This method is used to calculate the average cost of each unit produced in a large-scale production process. It is not ideal for small scale production or production of a variety of different products.

Process Costing Is Normally Used When