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.

Process Costing

A costing method used in manufacturing where costs are assigned to a product based on the process it goes through in the production cycle.

Variable Cost

Costs that vary directly with the level of production or service, such as materials and labor used in production.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent, salaries, and insurance.