Which of the following types of companies would most likely use process costing?
A)Aircraft manufacturers.
B)Textile manufacturers.
C)Textbook publishers.
D)Custom-machining ﬁrms.
E)Shipbuilders.

Question

Quizplus · Accepted Answer

Process costing is used by companies that produce large quantities of identical or similar products, such as textile manufacturers. This allows the cost of each unit to be calculated and allocated based on the overall cost of the entire production process. Aircraft manufacturers, textbook publishers, custom-machining firms, and shipbuilders are more likely to use job-order costing, where costs are assigned to specific orders or projects.

Which of the Following Types of Companies Would Most Likely