ECONOMICS

Detailed explanation-1: -Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other. In other words, the cost of each product produced is assumed to be the same as the cost of every other product.

Detailed explanation-2: -Method # 5 Unit Costing: This method is also known as single or output costing. It is suitable to industries where production is continuous and units are identical. The objective of this method is to ascertain the total cost as well as the cost per unit.

Detailed explanation-3: -Answer and Explanation: Process costing is used when a large number of identical products are manufactured. This costing method is best suited when there are standardized products in large quantities in the production process. An example of where the method of process costing can be used is an oil refinery.

Detailed explanation-4: -Process costing is a method of costing used mainly in manufacturing where units are continuously mass-produced through one or more processes. Examples of this include the manufacture of erasers, chemicals or processed food.

Detailed explanation-5: -Process costing is an accounting method typically used by companies that mass produce very similar or identical products or units of output.