Which of the following businesses is most likely to use a process costing system?
A) an accounting firm
B) a law firm
C) a soda manufacturer
D) a construction company

Question

Quizplus · Accepted Answer

Process costing is a costing method used in industries that produce homogeneousproducts through a continuous manufacturing process. Soda manufacturing is an industry that produces a standardized product through a continuous production process, making it the most likely candidate to use a process costing system. A law firm and an accounting firm offer services rather than products, and a construction company is more likely to use job costing, which assigns the cost to a specific project rather than a continuous production process.

Which of the Following Businesses Is Most Likely to Use