Companies that manufacture identical items through a series of uniform production steps use ________ to determine the cost per unit produced.
A) a process costing system
B) a job order costing system
C) both of the above systems
D) neither of the above systems

Question

Quizplus · Accepted Answer

A process costing system is specifically designed for companies that manufacture identical items through a series of uniform production steps. This system determines the cost per unit produced by calculating the total cost of each production step and dividing it by the number of units produced during that step. Job order costing system, on the other hand, is used for companies that produce custom or unique items, and therefore would not be appropriate for a company that manufactures identical items through uniform production steps.

Companies That Manufacture Identical Items Through a Series of Uniform