A process cost accounting system is most appropriate when

a. individual products are custom made to the specification of customers.

b. similar products are mass-produced.

c. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.

d. the focus of attention is on a particular job or order.

Question

Sofia David

Business

6 October, 17:40

A process cost accounting system is most appropriate when

a. individual products are custom made to the specification of customers.

b. similar products are mass-produced.

c. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.

d. the focus of attention is on a particular job or order.

+2

Answers (1)

Know the Answer?

Chubs · Answer 1

b. similar products are mass-produced.

Explanation:

Under process costing the cost is assigned to different products based on the processes used to manufacture the product.

This clearly shows the role of processes, as larger number of goods pass through the same process, then only this option is feasible.

Thus, when there is huge or mass production of goods and that the goods have common processes. the process cost accounting will be used.