COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which companies are least likely to use a process costing system?
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paper factory
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soft drink bottles
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public accounting firm
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petroleum processing company
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Explanation:
Detailed explanation-1: -products are heterogeneous. Process costing is not applicable to heterogeneous products because they are unique products. Examples are yachts and hand-made products.
Detailed explanation-2: -Answer and Explanation: The correct answer is option D) A builder of customized yachts. A builder who customized yachts manufacturer is likely to use job-order costing as it engaged in manufacturing customized items.
Detailed explanation-3: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.
Detailed explanation-4: -Answer choice: a. A soft drink company, such as Pepsi, could use a process costing system.
There is 1 question to complete.