Final answer:
A snack-food manufacturer typically uses process costing, which is suited for continuous and standardized production processes that result in homogeneous products. This method aligns with achieving economies of scale, lowering the per unit cost with increased production.
Step-by-step explanation:
A snack-food manufacturer typically would use process costing rather than job-order costing. Process costing is used by companies that produce homogeneous products in continuous processes. On the other hand, job-order costing is suitable for firms that offer customized products or services, such as a small appliance repair shop, a manufacturer of commercial passenger aircraft, or a specialty equipment manufacturer.
Process costing allows for tracking and accumulating direct and indirect costs associated with a production process and then allocating those costs across all units produced, resulting in a per unit cost. This method is most efficient in industries such as food production where the products are standardized and production is ongoing, achieving economies of scale where the cost per unit decreases as production volume increases.
Moreover, firms with lower fixed costs and higher variable costs, or those that face diminishing marginal returns, might not benefit from economies of scale to the same degree, and their cost structure would affect the choice of costing method.