Which of the Following Would Use a Process Costing System

question 157

Multiple Choice

Which of the following would use a process costing system?

• A) custom home builder
• B) custom helicopter manufacturer
• C) graduation photographer
• D) lumber mill

---

Definitions:

FOB

An incoterm meaning "Free on Board," which indicates that the seller is responsible for goods until they are loaded on a shipping vessel, at which point the responsibility shifts to the buyer.

Shipping Term

A term used in contracts to specify the responsibilities of buyers and sellers regarding the transportation of goods.

Common-Carrier Delivery Contracts

Agreements between an individual or company and a carrier, regulated by government agencies, concerning the transport of goods or passengers for a fee.

Destination Contracts

Contracts specifying that the seller will bear the risk and expense until the goods are delivered to a specific location.