In comparison to job-order costing, process costing is by far the most accurate costing system.

Question

Quizplus · Accepted Answer

Process costing is more appropriate for industries where production is continuous and identical products are produced in large quantities, such as chemicals, oil, and food processing. However, job-order costing is more accurate for industries where production is customized, such as construction or custom furniture manufacturing. Therefore, the accuracy of the costing system depends on the industry and type of production.

In Comparison to Job-Order Costing, Process Costing Is by Far