Which of the following organizations would most likely use a process costing system?
A) Gasoline refinery.
B) Automobile retailer.
C) Airplane manufacturer.
D) Public accounting firm.

Question

Quizplus · Accepted Answer

A process costing system is used by companies that produce large quantities of identical or similar products. Gasoline refineries, for example, produce large quantities of gasoline, which is a homogeneous product. Therefore, a gasoline refinery would most likely use a process costing system.

Which of the Following Organizations Would Most Likely Use a Process