The best cost system to use for a company producing a continuous stream of similar items would be a:
A)Job order system.
B)Process costing system.
C)Production costing system.
D)No cost system is required when jobs are similar.

Question

Quizplus · Accepted Answer

A process costing system is designed for companies that produce large quantities of similar products, such as a manufacturer of soft drinks or canned foods. This system accumulates costs by process or department, rather than by individual job, making it more efficient for companies that have a continuous flow of similar items.

The Best Cost System to Use for a Company Producing