A process cost system would most likely be used by a company that makes
A) motion pictures.
B) repairs to automobiles.
C) breakfast cereal.
D) college graduation announcements.

Question

Quizplus · Accepted Answer

A process cost system is used by companies that manufacture products in large quantities, such as breakfast cereal, which involves a repetitive series of steps or processes to produce the end result. Motion pictures, repairs to automobiles, and college graduation announcements are not produced in large quantities using a repetitive process, so a process cost system would not be appropriate.

A Process Cost System Would Most Likely Be Used by a Company