Which of the following would be most likely to use process costing?
A) custom furniture manufacturer
B) auto body repair shop
C) law firm
D) lawn fertilizer manufacturer

Question

Quizplus · Accepted Answer

Process costing is used for continuous production of similar products, where costs can be allocated to each unit of production. A lawn fertilizer manufacturer would produce similar products in a continuous process, making process costing the most appropriate method for determining the cost of each unit produced. The other options involve custom work, repairs, and services that would require a job costing or activity-based costing method.

Which of the Following Would Be Most Likely to Use