A process cost system would be used to account for the cost of manufacturing an oil tanker.

Question

Quizplus · Accepted Answer

A process cost system is typically used for products that are indistinguishable from each other and produced in a continuous process, such as chemicals or food products. Manufacturing an oil tanker involves unique, complex, and large-scale projects better suited for a job order costing system, which tracks costs by individual job or project.

A Process Cost System Would Be Used to Account for the Cost