A process costing system is most suitable for businesses that manufacture batches of unique products or provide specialized services.

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A process costing system is actually most suitable for businesses that manufacture large quantities of identical products. This is because the system focuses on assigning costs to each step or process in the production process, rather than to individual products. Therefore, it is typically used by companies in industries such as chemical production, food manufacturing, and oil refining.

A Process Costing System Is Most Suitable for Businesses That