Which of the following companies is most likely to use a job-order costing system rather than a process costing system?
A) Fast food restaurant
B) Shipbuilder
C) Crude oil refinery
D) Candy maker

Question

Quizplus · Accepted Answer

Job-order costing is used when a company produces unique, custom-made products or services in small quantities. A shipbuilder fits this profile as each ship is unique and built to order according to customer specifications. Fast food restaurant, crude oil refinery, and candy maker, on the other hand, produce standardized or homogenous products in large quantities using a process costing system.

Which of the Following Companies Is Most Likely to Use