The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is
A) process
B) departmental
C) first-in, first-out
D) job order

Question

Quizplus · Accepted Answer

A process cost system is best suited for industries that manufacture a large number of identical units of commodities on a continuous basis. Examples of such industries include oil refineries, paper mills, and food processing companies. The process cost system accumulates costs by process or department, and assigns an average cost per unit to all units produced during the period. This method is beneficial for companies that produce large quantities of similar products, as it simplifies cost allocation and product costing.

The Cost System Best Suited to Industries That Manufacture a Large