For which of the following businesses would a process cost system be appropriate?
A) boat repair service
B) shampoo manufacturer
C) dressmaker
D) custom furniture manufacturer

Question

Quizplus · Accepted Answer

A process cost system is used in manufacturing operations, where identical or similar products are produced in large quantities, such as a shampoo manufacturer. Boat repair service, dressmaker, and custom furniture manufacturer are all examples of businesses that use job order costing, where each product or service is unique and requires different materials, labor, and overhead costs.

For Which of the Following Businesses Would a Process Cost