Chapter $6$ Process Costing

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Exercises

$[$LO $6-1]6-27$ Process Costing in Process Industries Process costing is a good fit for companies in process industries in which costs are more easily traced to production departments than to individual products. The products are generally produced on a continuous, mass production basis. Process industries often involve the production of a commodity product, and the companies in these industries usually have a small number of relatively homogeneous products.

Required Give some examples of companies that would use process costing, and explain why.