Which of the following companies will most likely use a process costing system?
A)A law office
B)A custom home builder
C)A car repair business
D)A food manufacturer

Question

Quizplus · Accepted Answer

A process costing system is used for businesses that produce a large number of identical or similar products, such as in the case of a food manufacturer. The other businesses listed (law office, custom home builder, car repair business) do not involve the mass production of identical products, and therefore would not likely use a process costing system.

Which of the Following Companies Will Most Likely Use a Process