A process cost system would be used by all of the following except a(n)
A) chemical company.
B) advertising company.
C) oil company.
D) computer chip company.

Question

Quizplus · Accepted Answer

A process cost system is used for companies that produce identical products in large batches or continuous processes, and where it is difficult to distinguish between individual units. This fits the production process for a chemical company, an oil company, and a computer chip company. However, an advertising company does not produce physical products, so a process cost system would not be applicable for their operations.

A Process Cost System Would Be Used by All of the Following