For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system?
A)a paper mill that processes wood pulp into large rolls of paper
B)a shop that restores old cars to "showroom" quality
C)a framing shop that builds picture frames to order for individual customers
D)a masonry company that builds brick walls, bulkheads, and walkways designed by architects

Question

Quizplus · Accepted Answer

A process costing system is appropriate for a continuous, repetitive manufacturing process where large quantities of identical products are produced, such as in a paper mill.

Answer: D
 A masonry company that builds brick walls, bulkheads, and walkways designed by architects would use a process costing system as they are producing a large number of identical products.

For Which Situation(s) Below Would an Organization Be More Likely