Choose the most likely used costing system for the industries listed below.
-Costing system used by a chemical manufacturer.
A)Process Costing
B)Job Order Costing

Question

Quizplus · Accepted Answer

A chemical manufacturer is more likely to use a process costing system as it produces large quantities of homogenous products in continuous production processes. With a process costing system, the total cost of a particular process is divided by the total output to get the unit cost. This system is suitable for industries that have standardized products, such as chemicals, food processing, and textiles.

Choose the Most Likely Used Costing System for the Industries