Which one of the following would most likely use a process cost system?

Question

Quizplus · Accepted Answer

A company that makes soup is a good example of a business that would use a process cost system. In this type of system, the production process is continuous and goods are produced in large quantities, such as in a factory setting. The cost of producing each unit is relatively low, and the focus is on accumulating the cost of the materials, labor, and overhead used in the process. This type of system is commonly used in manufacturing and production industries such as food processing.

Which One of the Following Would Most Likely Use a Process