COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Construction companies
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Sugar refining units
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Plan manufacturers
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Printing presses
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Detailed explanation-1: -Process costing is normally used in big industries where the huge quantity is produced like oil refineries, sugar industries.
Detailed explanation-2: -Answer: Paint manufacturer, Yacht builder and soft drink bottler companies are most likely to use the process costing system.
Detailed explanation-3: -Sugar is produced through various processes before it gets as a finished product. Hence in the Sugar Industry, the process costing method is used.
Detailed explanation-4: -Question: A process costing system1 is used by companies that produce similar or identical units of product in batches employing a consistent process. Examples of companies that use process costing include Chevron Corporation (petroleum products), the Wrigley Company (chewing gum), and Pittsburgh Paints (paint).