Which of the following is an industry that would use a process costing system rather than a job order costing system?
A) Custom furniture manufacturer
B) Music production studio
C) Paint manufacturer
D) Home remodeling contractor

Question

Quizplus · Accepted Answer

A process costing system is used when products are mass produced in a continuous flow, such as in a paint manufacturing company. Job order costing system is used for customized or unique products, such as in custom furniture manufacturing or home remodeling contracting. Music production studio may use either system depending on whether they produce custom music for specific clients or mass produce music tracks for sale.

Which of the Following Is an Industry That Would Use