ECONOMICS

Detailed explanation-1: -Process-costing would be most likely used by a firm that produces heterogeneous products. Process-costing is used by firms with homogenous products, not heterogeneous products. In a process-costing system, material costs and conversion costs are incurred simultaneously.

Detailed explanation-2: -Process costing is not applicable to heterogeneous products because they are unique products.

Detailed explanation-3: -Process costing is generally used by manufacturers that produce a large volume of identical items, such as companies involved in oil refining, food production, chemical processing, textiles, glass, cement and paint.

Detailed explanation-4: -The answer is b. Homogeneous product and high production volume. Process costing is a costing method that is most suited for homogenous products.

Detailed explanation-5: -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.