ECONOMICS

Detailed explanation-1: -Process cost systems are used in all of the following industries except: Chemicals.

Detailed explanation-2: -Process costing is an important product costing method for manufacturing companies that mass produce a large volume of similar products or units of output. Process costing is widely used in industries such as oil refining, food production, chemical processing, textiles, glass, cement and paint manufacture.

Detailed explanation-3: -Examples of companies that use process costing include Chevron Corporation (petroleum products), the Wrigley Company (chewing gum), and Pittsburgh Paints (paint). A job costing system2 is used by companies that produce unique products or jobs.

Detailed explanation-4: -Process costing systems are used in organizations to track the cost of producing a product or providing a service. This type of system is often used in manufacturing companies, where products are produced in large quantities and there is a need to track the direct and indirect costs associated with each product.

Detailed explanation-5: -Answer and Explanation: The correct answer is c. products are heterogeneous. Process costing is not applicable to heterogeneous products because they are unique products.