Which type of costing system works best with a large number of homogeneous products?
A) job-order costing
B) process costing
C) sequential costing
D) parallel costing

Question

Quizplus · Accepted Answer

Process costing system is best suited for industries with a large number of homogeneous products as it is a continuous production costing system that averages costs over the entire production process. This system is used in industries such as chemicals, textiles, and food processing, where products are produced in large quantities and are similar in nature. Job-order costing is suitable for industries that produce unique, custom-made products, while sequential and parallel costing are not recognized costing systems.

Which Type of Costing System Works Best with a Large