For which of the following businesses would the process cost system be appropriate?

Question

Quizplus · Accepted Answer

The process cost system is suitable for businesses that produce similar products on a continuous basis, such as lumber mills. The system involves tracking the costs incurred at each stage of the production process and assigning them to the units produced. This allows for accurate costing and pricing of products. For businesses that produce unique, one-of-a-kind products like custom cabinets or dress designs, a job order cost system may be more appropriate. However, large printing firms can also use process cost systems for printing large quantities of similar items such as flyers or booklets.

For Which of the Following Businesses Would the Process Cost