Process Costing Is Used When

question 104

Multiple Choice

Process costing is used when

• A) the production process is continuous.
• B) production is aimed at filling a specific customer order.
• C) dissimilar products are involved.
• D) costs are to be assigned to specific jobs.

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Definitions:

External Users

Individuals or entities outside of a company, such as investors, creditors, and regulatory agencies, who rely on financial statements to make decisions about the company.

Accounting Information

Financial data and statements that provide insight into a business's economic activities and financial health.

Information Needs

The data and information requirements of individuals or organizations to make informed decisions or fulfill specific tasks.

Internal User

An individual or group within an organization who uses financial and operational information for decision-making purposes, such as managers and employees.