Process costing is not used when
A) similar goods are being produced.
B) large volumes are produced.
C) jobs have distinguishing characteristics.
D) a series of connected manufacturing processes is necessary.

Question

Quizplus · Accepted Answer

Process costing is designed for situations where goods are mass-produced in large volumes, and the units being produced are identical or very similar. Jobs that have distinguishing characteristics are better suited to job costing or custom costing, where the cost of each individual job is tracked separately.

Process Costing Is Not Used When