A company that applies process costing is most frequently characterized by:

A) Low standardization and high production volume.
B) Custom orders and mass production.
C) Repetitive production and unique products.
D) Repetitive production and low production volume.
E) Similar products and high production volume.

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Jason McLaughlin · Accepted Answer

Final Answer : E, Explanation :  Process costing is most suitable for companies that produce similar products in high volumes. This is because process costing assigns costs to each unit based on the average cost of the entire production process, rather than tracing costs to each individual unit. This method works well for companies that produce large quantities of similar products rather than unique or custom products.

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