Which of the following would most likely use a process cost

Which of the following would most likely use a process cost system?

Guitar manufacturer

Paint manufacturer

Custom furniture manufacturer

Tax consulting company

Guitar manufacturer

Paint manufacturer

Custom furniture manufacturer

Tax consulting company

Solution

The correct choice is Paint manufacturer

Explanation : -  A process costing system is a product costing system used by companies that make large amounts of similar products or liquid products or that have long, continuous production runs of identical products .

Companies that produce Paints, beverages, chocolate syrup, computer chips are typical users of process costing system.

Which of the following would most likely use a process cost system? Guitar manufacturer Paint manufacturer Custom furniture manufacturer Tax consulting company

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