Which of the following would be most likely to use process costing?

Question

Quizplus · Accepted Answer

Process costing is an accounting method used to determine the cost of producing a product by tracking the costs incurred during each stage of production. A lawn fertilizer manufacturer would be most likely to use process costing because the production of fertilizer involves multiple stages, including mixing and packaging, which are typically completed in large batches. In contrast, businesses that produce custom furniture or provide services like auto body repair or legal advice do not typically have clearly defined production stages that can be tracked using process costing methods.

Which of the Following Would Be Most Likely to Use