alleryStart learning →A cereal plant runs the same recipe continuously through the same departments. Its costs are best traced using:
AParcel costing
BProcess costing
CPrompt costing
DProfit costing
Answer & Solution
Correct answer: B. Process costing
1. The output is homogeneous and the flow never stops.
2. No single box can be tied to its own slice of material and time.
3. Continuous production of similar units calls for process costing.
_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
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