In order to use a process costing system,products produced should be homogenous in nature.

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Process costing is used to calculate the average cost of a large volume of identical products. The products need to be homogenous in nature so that they can be grouped together for costing purposes. This is because the cost of production is spread out evenly over the entire batch of products, so it is important that each product in the batch has the same production cost.

In Order to Use a Process Costing System,products Produced Should