For which of the following businesses would a process cost s

For which of the following businesses would a process cost system be appropriate? a.Yacht builder b. Custom electronics manufacturer c. An oil refinery d. Specialty furniture company

Solution

Answer:      C.

The process cost system is most appropriate for a business for manufacturing is conducted by continuous operations and involves a series of uniform production processes, such as the processing of crude oil. The job order cost system is most appropriate for a business where the product is made to customers\' specifications, such as a custom electronic manufacturer, Yacht builder, or speciality furniture company.