Process costing systems are used only by companies that manufacture physical products; companies that provide services do not use process costing.

Question

Quizplus · Accepted Answer

This statement is false. While process costing systems are commonly used by manufacturing companies, service companies that provide physical products (such as a car wash or a hair salon) can also use process costing to track the costs associated with producing those products.

Process Costing Systems Are Used Only by Companies That Manufacture