Choose the most likely used costing system for the industries listed below.
-Costing system used by a food manufacturer.
A)Process Costing
B)Job Order Costing

Question

Quizplus · Accepted Answer

Process costing is most likely used by a food manufacturer as it is ideal for industries that produce large quantities of identical products, such as processed foods. The process of manufacturing these products is continuous, and the cost is spread equally across the units produced. This system is designed to calculate the cost of each unit of output, which is important in the food industry, where consistency and keeping track of costs are essential.

Choose the Most Likely Used Costing System for the Industries