
Concept explainers
Determination of Costing Method is a way to determine the method used by companies that are involved in different type of production. The
The company with the slightest of probability to use process costing system is to be determined.

Answer to Problem 1QC
Solution: c. Accounting firm
Explanation of Solution
Job costing method is used by the companies involved in the production of customized products. However, the process costing method is used by companies that produce identical units of single product during the production period.
For Accounting firms, the requirement of each client is unique and such firms must provide the customized services to them based on their requirement. Therefore, such firms are least likely to use process costing system. However, other firms like paper manufacturer, soft drink bottler and petroleum processor use the Process costing system as they are involved in manufacturing identical product.
To conclude, it must be said that accounting firm is the only firm which is least likely to use process costing system (as per given problem).
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Chapter 20 Solutions
Horngren's Accounting (11th Edition)
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