The Paris Manufacturing Company produces a single uniform product throughout the year.Which of the following product costing systems should be used by Paris?
A) Job-order costing.
B) Process costing.
C) Operation costing.
D) Batch costing.

Question

Quizplus · Accepted Answer

Process costing is the best choice for Paris since they produce a single uniform product throughout the year. Process costing is well-suited for continuous production of identical products, regardless of the volume of production. Job-order and batch costing are more appropriate when there is custom-made or unique production, and operation costing is suitable for the case where products are manufactured in a sequential manner, and each operation is considered as a single cost center.

The Paris Manufacturing Company Produces a Single Uniform Product Throughout