When is a process cost accounting system most appropriate?
A)when mass-produced products are manufactured that are very similar in nature
B)when a company produces multiple jobs within the same accounting period
C)when companies produce uniquely different products
D)when a variety of different products are produced, each one requiring different types of material, labour, and overhead

Question

Quizplus · Accepted Answer

A process cost accounting system is most appropriate when mass-produced products are manufactured that are very similar in nature. This is because the cost of each unit produced is likely to be similar, which makes it easier to assign costs to each unit using a uniform cost allocation method.

When Is a Process Cost Accounting System Most Appropriate