Question

When should process costing techniques be used in assigning costs to products?

a. if the firm manufactures heterogeneous products
b. if the products are repetitively produced
c. if the products are manufactured according to customer specifications
d. all of these choices are correct?

Answer 1

The correct option is B.
Process costing is the type of costing technique in which costs are assigned to products in batches. This type of costing is usually used by companies which produce homogeneous products which have similar production process stages. Cost is usually assigned to the batches of goods produced instead of individual units.