ECONOMICS

Detailed explanation-1: -Process costing system is used by the companies that manufacture similar products in large quantities by following a series of uniform manufacturing procedures. Hence, it is classified as the process costing system.

Detailed explanation-2: -Process costing is an accounting method typically used by companies that mass produce very similar or identical products or units of output.

Detailed explanation-3: -A process costing system is used by companies that produce similar or identical units of product in batches employing a consistent process. A job costing system is used by companies that produce unique products or jobs.

Detailed explanation-4: -If the company is producing homogeneous products, it can use the process costing method for averaging costs because the process costing system averages the cost of a product while it passes through different processes.

Detailed explanation-5: -Process costing is used when a single product is made on a continuous basis. The units produced are identical. Job order costing is used when different jobs are worked each period. Process costing accumulates manufacturing costs (raw material, direct labor and manufacturing overhead) by processing department.