A process costing system would be appropriate for all of the following except:
A) Production of gasoline.
B) Manufacture of smartphones.
C) Services provided by a public accounting firm.
D) Manufacture of granola bars.

Question

Quizplus · Accepted Answer

A process costing system is used to track costs for products or services that are produced in large quantities, over a continuous period of time, and where the production process is uniform or standardized. Gasoline, smartphones, and granola bars all involve a standardized production process with a large volume of output, making them suitable for process costing. However, services provided by a public accounting firm typically involve customized work for each client and do not involve a standardized production process, making them unsuitable for process costing.

A Process Costing System Would Be Appropriate for All of the Following