Process Costing Is Not Used When

question 86

Multiple Choice

Process costing is not used when

• A) similar goods are being produced.
• B) large volumes are produced.
• C) jobs have distinguishing characteristics.
• D) a series of connected manufacturing processes is necessary.

---

Definitions:

Variable Cost Per Unit

The cost that varies directly with the production volume; it rises as more units are produced and falls as fewer units are produced.

Fixed Manufacturing Cost

Costs that do not vary with the level of production, including salaries of managers and rent of the factory.

Production Volume

The total number of units of a product or service produced over a specific period of time.

Total Cost Data

The sum of all costs associated with the production or delivery of goods and services.