Which of the following types of companies would most likely use process costing?
A) Aircraft manufacturers.
B) Textile manufacturers.
C) Textbook publishers.
D) Custom-machining firms.
E) Shipbuilders.

Question

Quizplus · Accepted Answer

Textile manufacturers are more likely to use process costing because they produce large volumes of similar products, which is where process costing is most efficient. Process costing averages the costs over all units produced, making it ideal for industries like textiles where products are less differentiated.

Which of the Following Types of Companies Would Most Likely