ECONOMICS

Detailed explanation-1: -Examples of industries that would use process costing include the pharmaceutical and semiconductor industry. The principle difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services.

Detailed explanation-2: -Process costing is widely used in industries such as oil refining, food production, chemical processing, textiles, glass, cement and paint manufacture.

Detailed explanation-3: -Mass production of identical units such as beverages, pharmaceuticals, cereal, utilize process costing to determine the cost of each unit. Companies that produce identical units such as lumber, tile, brick manufacturers, cereal makers, or pharmaceutical companies utilize process costing.

Detailed explanation-4: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.

Detailed explanation-5: -Process costing is not applicable to heterogeneous products because they are unique products.