An example of a business which would have no beginning or ending inventory but which could use process costing to compute unit costs would be a ________.
A) clothing manufacturer
B) corporation whose sole business activity is processing the customer deposits of several banks
C) manufacturer of custom houses
D) manufacturer of large TVs

Question

Quizplus · Accepted Answer

A corporation whose sole business activity is processing the customer deposits of several banks would not have any beginning or ending inventory as they are not manufacturing any physical product. However, they could use process costing to compute unit costs for their service operations.

An Example of a Business Which Would Have No Beginning