Question Universal Industries operates a division in Zimbabwe, a country with very high inflation
rates. Traditionally, the company has used the same costing techniques in all countries to
facilitate reporting to corporate headquarters. However, the financial accounting reports from
Zimbabwe never seem to match the actual unit results of the division. Management has
studied the problem and it appears that beginning inventories may be the cause of the
unmatched information. The reason for this is that the inventories have a different financial
base because of the severe inflation. How can process costing assist in addressing the problem facing Universal Industries?