Process costing is used to account for:
A) large numbers of identical products that are produced in a continuous manufacturing environment.
B) small numbers of products that are produced in batches.
C) raw materials that are converted directly to finished goods.
D) finished goods that are refined and processed further.
E) large numbers of products that are produced in a non-repetitive process.

Question

Quizplus · Accepted Answer

Process costing is appropriate for situations where large numbers of identical products are produced in a continuous manufacturing environment, allowing costs to be averaged over all units produced.

Process Costing Is Used to Account For