BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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bricklaying firms
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transport firms
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hospitals
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oil refining firms
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Detailed explanation-1: -Explanation: Process costing is appropriate for oil refining businesses. Process costing is suitable for companies that produce homogeneous products and continuous production.
Detailed explanation-2: -Process costing is suitable for oil refing firms. Process costing is suitable for industries producing homogeneous products and where production is a continuous flow.
Detailed explanation-3: -Process costing is suitable for oil refining firms. Process costing is suitable for industries that produce homogeneous products.
Detailed explanation-4: -Process costing traces and accumulates direct cost, and allocates indirect cost incurred during a manufacturing process. The following are examples of some of the industries which use process costing: Oil refineries. Soap manufacturers.
Detailed explanation-5: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.