For which of the following businesses would the process cost system be appropriate?
A) custom cabinet maker
B) landscaper
C) paper mill
D) catering firm

Question

Quizplus · Accepted Answer

The process cost system would be appropriate for a paper mill where multiple stages are involved in the production of paper and it is difficult to track the costs of each individual product. This system would allow the mill to allocate costs to each stage of production and calculate the total cost of each unit of paper. The other businesses listed may benefit from job costing or a hybrid costing system, depending on their specific production processes.

For Which of the Following Businesses Would the Process Cost