Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?
A) Fast food restaurant.
B) Shipbuilding.
C) Crude oil refining.
D) Candy making.

Question

Quizplus · Accepted Answer

Job-order costing is used when goods are produced in batches or on a custom basis, whereas process costing is used when goods are produced in a continuous process. Shipbuilding involves producing unique products in batches, making it more likely to use a job-order costing system. The other options - fast food restaurant, crude oil refining, and candy making - involve more continuous production processes, making process costing systems more appropriate.

Which of the Following Companies Would Be Most Likely to Use