The costing system used by an oil refinery would be
A)process costing.
B)job costing.
C)equivalent units costing.
D)conversion cost costing.

Question

Quizplus · Accepted Answer

An oil refinery would use process costing, as it involves a continuous and standardized production process with multiple units being produced at once. It is the most appropriate costing system for a refinery, as it assigns costs to each stage of production and calculates the average cost per unit. Job costing is more appropriate for customized or unique products, equivalent units costing is used in process costing, and conversion cost costing is not a recognized costing system.

The Costing System Used by an Oil Refinery Would Be