Which of the following would use a process costing system rather than a job order costing system?
A) a health-care service provider
B) a music production studio
C) a paint manufacturer
D) a home remodeling contracting company

Question

Quizplus · Accepted Answer

A process costing system is used for mass production of similar products, such as in the case of a paint manufacturer. Therefore, choice C is the best option for a process costing system. The other choices involve providing services or customizing products on a per-order basis, which would require a job order costing system.

Which of the Following Would Use a Process Costing System