Question

Which of the following is a nonmanufacturing business where process costing would most likely be used? An auto body shop. A furniture repair shop. A laboratory that tests water samples for lead A tailoring shop. A beauty shop.

Answer 1

All of them are the non-manufacturing business where process costing would most likely be used.

Explanation:

• All are non-manufacturing business which are as follows,

• An auto body shop.
• A furniture repair shop.
• A laboratory that tests water samples for lead A tailoring shop.
• A beauty shop.
• Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unit
• Non-manufacturing costs includes,
• selling expenses
• general expenses
• Selling Expenses
• It is also called as selling and distribution expenses.
• Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.