What type of business would likely use process costing?
A)a paper cup manufacturer
B)a cruise ship manufacturer
C)a modular home builder
D)a custom snowboard company

Question

Quizplus · Accepted Answer

Process costing is a method of costing used by companies that produce large quantities of homogeneous products in batches. Therefore, a paper cup manufacturer, which produces cups in large batches, is most likely to use process costing. The other options involve products that are more likely to be produced in smaller quantities or one-of-a-kind pieces, so they would not be a good fit for process costing.

What Type of Business Would Likely Use Process Costing