Process costing is most likely to be used by which of the following companies?
A) Construction company that builds custom homes
B) Shipyard
C) Manufacturer of metal folding chairs
D) Producer of special order furniture

Question

Quizplus · Accepted Answer

Process costing is typically used in manufacturing industries where products are produced in large quantities and involve a continuous flow of identical units being produced, such as the manufacture of metal folding chairs. The other options involve unique or custom-made products, which would be better suited for job costing.

Process Costing Is Most Likely to Be Used by Which