Process costing systems are used when products manufactured are relatively homogeneous and there are few and relatively small differences in the production requirements for different products.

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This is because process costing systems are designed to allocate the costs of producing a large volume of identical or similar products, which are produced using a consistent process. The emphasis is on the production process itself, rather than on individual products, and so the system works best for products with relatively similar production requirements.

Process Costing Systems Are Used When Products Manufactured Are Relatively