Process costing is most likely used in which of the following industries?
A) Aircraft
B) Chemicals
C) Construction
D) Printing

Question

Quizplus · Accepted Answer

Process costing is commonly used in industries that produce large quantities of homogenous products through a continuous flow process, such as the chemical industry. In this type of industry, the cost of producing a product is averaged over all units produced during a period, making process costing an effective method of cost allocation. Aircraft and construction involve more custom projects, while printing can be either job order or process costing depending on the production process.

Process Costing Is Most Likely Used in Which of the Following