Q 15E_d

Question

Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.

d. Companies that produce large numbers of identical products.

Step-by-Step Solution

Verified
Answer

Answer: 

Process costing system is used by the company that manufactures the products in large quantity.

1Step-by-Step Solution:

Step 1: Process costing system

Process costing system is a system used by the companies for determining the cost of the manufactured products which are produced in large number of quantity. 

2Step 2: Classification of costing system according to the characteristics

The company that produces large number of identical products use the process costing while determining the cost of manufacturing.