Which of the following entities would probably use a process costing system?
A)An oil refinery
B)A yacht builder
C)A custom furniture company
D)A custom jewelry manufacturer

Question

Quizplus · Accepted Answer

An oil refinery typically produces large quantities of homogeneous products with similar production processes, making process costing an appropriate method for calculating the cost of production.

B) A yacht builder would likely use job costing due to the unique nature of each yacht produced. 
C) A custom furniture company would also likely use job costing as each piece of furniture is unique and requires different levels of customization. 
D) A custom jewelry manufacturer would likely use job costing for the same reasons as the custom furniture company.

Which of the Following Entities Would Probably Use a Process