Which of the following companies would be most likely to use a process costing system?
A)a shipbuilder
B)a furniture manufacturer
C)a law firm
D)a utility producing natural gas

Question

Quizplus · Accepted Answer

A utility producing natural gas would be most likely to use a process costing system. This is because the production of natural gas involves a continuous production process where large quantities of identical units are produced. Process costing systems are suitable for industries that involve the production of a large number of identical products using a continuous production process.

Which of the Following Companies Would Be Most Likely to Use