ECONOMICS

Detailed explanation-1: -Process costing is the only reasonable approach in many industries to determine product costs. Examples of industries where this type of production occurs include oil refining, food production, and chemical processing.

Detailed explanation-2: -Process costing is an important product costing method for manufacturing companies that mass produce a large volume of similar products or units of output. Process costing is widely used in industries such as oil refining, food production, chemical processing, textiles, glass, cement and paint manufacture.

Detailed explanation-3: -Process costing is suitable for oil refining firms. Process costing is suitable for industries that produce homogeneous products.

Detailed explanation-4: -The full cost (FC) method is an accounting system used specifically by extractive industries such as oil and gas companies.

Detailed explanation-5: -Process costing is suitable for oil refing firms. Process costing is suitable for industries producing homogeneous products and where production is a continuous flow.