Question

A company that applies process costing is most frequently characterized by:A. Low standardization and high production volume.B. Custom orders and homogeneous products.C. Repetitive production and heterogeneous products.D. Repetitive production and low production volume.E. Homogeneous product and high production volume.

Answer 1

Answer:

E. Homogeneous product and high production volume.

Explanation:

In order to use the process costing system there has to be similar product.

That way the cost of doing a unit is the same as any other unit.

If not, then is better to use job costying system.

Also it has to be a high volume, mass production. So the cost of the period are allocated to the production of untis during the period, instead of allocate for job or order.