Process Costing Would Likely Be Used in All of the Following

question 69

Multiple Choice

Process costing would likely be used in all of the following industries except:

• A) petroleum refining.
• B) chemicals.
• C) truck tire manufacturing.
• D) wood pulp production.
• E) automobile repair.

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Definitions:

Value Chain

The full range of activities that businesses go through to bring a product or service from its conception to its end use by consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Cost of Goods Manufactured

The total cost of all materials, labor, and overhead used to produce goods during a specific period.

Cost of Goods Purchased

The total expense incurred by a company to buy the goods it has sold or will sell, excluding any indirect costs.