Asked by Yussef Farag on Jun 28, 2024
Verified
Which of the following would be most likely to use process costing?
A) custom furniture manufacturer
B) auto body repair shop
C) law firm
D) lawn fertilizer manufacturer
Process Costing
An accounting methodology used for homogeneous products, where costs are assigned based on an average per unit, useful for continuous manufacturing settings.
Custom Furniture
Furniture that is specially designed and made according to the unique requirements or specifications of a customer.
Lawn Fertilizer
A chemical or natural substance added to soil or land to increase its fertility and promote grass growth.
- Learn about the core aspects and practical applications of job order and process cost systems in the context of manufacturing operations.
Verified Answer
LT
Lewden TristanJun 29, 2024
Final Answer :
D
Explanation :
Process costing is most commonly used in manufacturing operations where homogeneous products are produced in a continuous production process. Therefore, the lawn fertilizer manufacturer is the most likely candidate to use process costing, as they produce a standardized product in a continuous process.
Learning Objectives
- Learn about the core aspects and practical applications of job order and process cost systems in the context of manufacturing operations.