Which of the following businesses is most likely to use process cost accounting system?
A) Custom cabinet manufacturer
B) Dress designer
C) Lumber mill
D) Printing firm

Question

Quizplus · Accepted Answer

A lumber mill is most likely to use process cost accounting system because it produces large quantities of standardized products, such as lumber, where the production process is continuous and involves identical or similar processes. This type of accounting system is designed to allocate costs to each unit of product based on the cost of the resources used in each production process. The other businesses listed (custom cabinet manufacturer, dress designer, printing firm) are more likely to use job cost accounting system because they produce custom or unique products, and the costs vary based on the specific job requirements.

Which of the Following Businesses Is Most Likely to Use