Which of the following manufacturers would most likely not use a process-cost accounting system?
A) A producer of computer monitors.
B) A paint manufacturer.
C) A producer of frozen orange juice.
D) A builder of customized yachts.
E) A lumber mill.

Question

Quizplus · Accepted Answer

A builder of customized yachts would most likely not use a process-cost accounting system because their products are unique and made to order, which is better suited for job order costing rather than process costing. Process costing is used for industries where products are more homogeneous and produced in a continuous process, such as paint manufacturing, lumber milling, and the production of computer monitors or frozen orange juice.

Which of the Following Manufacturers Would Most Likely Not Use