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: -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).

Detailed explanation-3: -Answer and Explanation: Process costing is used to track costs for products which are uniform in nature and produced in large batches. Thus, process costing would most likely be used by D. A manufacturer of cereals.

Detailed explanation-4: -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-5: -Process costing is normally used in big industries where the huge quantity is produced like oil refineries, sugar industries.