Process Costing Is Normally Used When

question 83

Multiple Choice

Process costing is normally used when:

• A) large numbers of different products are manufactured.
• B) large numbers of nearly identical products are manufactured.
• C) small numbers of nearly identical products are manufactured.
• D) the fixed costs of manufacturing exceed the variable cost of manufacturing.

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Definitions:

Functional Specialization

The practice of organizing a workforce where each member or department focuses on a specific set of tasks or expertise, promoting efficiency.

Divisional Departmentation

An organizational structure where divisions are formed based on products, services, markets, or geographic locations.

Matrix Departmentation

Is a combination of functional and divisional patterns wherein an individual is assigned to more than one type of unit.

Total Quality Management

An ongoing process of improvement involving all members of an organization to enhance quality and meet or exceed customer expectations.