Banana Shirts produces t-shirts in large batches.Most of its t-shirts are made of regular cotton,although some are made from ethically produced cotton.The manufacturing process is relatively simple;most t-shirts go through similar processes;the main difference is whether the t-shirt requires embroidery or printing.The most appropriate costing system for Banana Shirts is:

Question

Quizplus · Accepted Answer

Operation costing systems are suitable for Banana Shirts because they produce t-shirts in large batches with some variations in processes, like embroidery or printing, which require tracking different costs.

Banana Shirts Produces T-Shirts in Large Batches