ECONOMICS

Detailed explanation-1: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.

Detailed explanation-2: -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-3: -Answer and Explanation: The Coca-Cola Company uses a process cost system in its bottling plants because it manufactures similar kinds of products. This means that the cost of final products is the same. The process cost system also helps track the cost of the company’s beverages during production.

Detailed explanation-4: -Answer and Explanation: Process costing would be more likely use by the companies who are involved in producing relatively homogeneous (Identical products) goods and services in batches by following continuous and consistent processes.

Detailed explanation-5: -Answer and Explanation: The correct answer is C. Chemical producer.