Which costing system would be most appropriate for use by a soft drink bottling company?

Question

Quizplus · Accepted Answer

A soft drink bottling company produces large quantities of identical products, which makes it more suitable for a process costing system. In this system, the costs are accumulated by process, and the total cost is divided by the number of units produced. This is ideal for a soft drink bottling company, as it continuously produces the same product in high volume. The other costing systems, such as job costing, direct costing, or variable costing systems, are more suitable for businesses that produce individual items with unique costs or for companies where costs can be directly traced to a specific product or customer.

Which Costing System Would Be Most Appropriate for Use by a Soft