When should process costing techniques be used in assigning costs to products?
A)any time production is only partially completed during the accounting period
B)when the product is composed of mass-produced homogeneous products
C)when the product is manufactured according to customer specifications
D)when the product is unique and made to order

Question

Quizplus · Accepted Answer

Process costing techniques are best used when the product is composed of mass-produced homogeneous products that go through a series of standardized steps or processes. This allows for the allocation of costs to each unit of output using the average cost method. Therefore, option B is the best choice. Options A, C, and D do not describe situations where process costing is appropriate.

When Should Process Costing Techniques Be Used in Assigning Costs