Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?
A) fast food restaurant
B) shipbuilding
C) crude oil refining
D) candy making

Question

Quizplus · Accepted Answer

Companies that produce unique products or services in small batches are most likely to use a job-order costing system. Shipbuilding involves the production of one-of-a-kind vessels, making it a suitable candidate for a job-order costing system. On the other hand, fast food restaurants, crude oil refining, and candy making often use a process costing system as they produce large quantities of identical products.

Which of the Following Companies Would Be Most Likely to Use