A. Process costing is used when the units produced are similar (homogenous), as they are in this question.
B. Absorption costing is a method that can be used in many situations and in absorption costing fixed manufacturing costs are included as a product cost. Though it is possible that a company in this situation would use absorption costing, it is not usually used by management for unit-cost data.
C. Direct costing includes only the direct costs of production and would not be used by management in unit costing.
D. Job order costing is used when the items produced are unique from each other, which is not the case in this situation.
