Process costing would not be used by which of the following companies?
A)Sherwin-Williams, manufacturer of paint and stains
B)Coca-Cola, soft drink manufacturer
C)American Custom Yachts, Inc., manufacturer of custom yachts
D)Jelly Belly, manufacturer of jelly beans and other candy

Question

Quizplus · Accepted Answer

Process costing is used by companies that produce homogeneous products in large quantities through a continuous production process, where costs are accumulated by department or process. However, American Custom Yachts, Inc. produces custom yachts, which are unique and produced in small quantities or on a per-order basis. Therefore, process costing would not be suitable for this type of manufacturing company.

Process Costing Would Not Be Used by Which of the Following