A process costing system is employed in those situations where: many different products, jobs, or batches of production are being produced each period. where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. a service is performed such as in a law firm or an accounting firm. full or absorption cost approach is not employed.

Question

Business

Daniella Riddle

14 November, 06:19

A process costing system is employed in those situations where: many different products, jobs, or batches of production are being produced each period. where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. a service is performed such as in a law firm or an accounting firm. full or absorption cost approach is not employed.

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Kylie Lloyd · Answer 1

The answer to this question is option B. where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

Explanation:

Product costing is the accounting process of determining all business expenses pertaining the creation of company products. These costs can include raw material purchases, worker wages, production transportation costs and retail stocking fees.

Process costing is commonly used by companies operating in mass production of similar or identical products since the products go through the same processes.

From the above explanation the best answer is B where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.