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Question #1: What are the characteristics of a company that would be more likely to use process costing than job order costing? Hi Professor and class, A process-costing system is a costing system in which the cost of a product or service is obtained by assigning costs to masses of like or similar units. Process-costing systems are used in industries that produce like or similar units which are often mass produced. In these industries,
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Unformatted text preview: products are manufactured in a very similar way. The companies usually use the same amount of direct materials, direct manufacturing labor costs and manufacturing overhead costs. Industries that use process costing systems are for example: oil refining, pharmaceuticals, tile manufacturing, computer manufacturers, cereal and candy producers. Jack...
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