The costing system used by a company making computer chips would be:
A)job costing.
B)process costing.
C)equivalent units costing.
D)conversion cost costing.

Question

Quizplus · Accepted Answer

A company making computer chips would most likely use a process costing system because it involves homogeneous products being produced on a continuous basis through a series of departments or steps. This is similar to the manufacturing process of computer chips which involves a sequential process in which each step contributes to the overall product. Job costing would be more appropriate for a company that produces unique, custom-made products. Equivalent units costing and conversion cost costing are not commonly used costing systems.

The Costing System Used by a Company Making Computer Chips