Which of the following companies would be most likely to use a process costing system?
A)Ship builder.
B)Movie studio.
C)Oil refinery.
D)Hospital.

Question

Quizplus · Accepted Answer

Oil refineries are typically involved in the production of similar products in large batches with uniform manufacturing processes, making them the most likely candidate for using a process costing system. This system is designed to allocate cost of production to each process or stage of production based on the number of units produced. This would allow oil refineries to accurately allocate the cost of producing each unit of the same product.

Which of the Following Companies Would Be Most Likely to Use