Question

Manufacturing firms that have characteristics of both job and process environments often use:

a.process-costing approach.
b.individual production processes.
c.activity-based costing approach.
d.production processes.

Answer 1

Manufacturing firms that have characteristics of both job and process environments often use an activity-based costing (ABC) approach to determine the cost of each individual production process.

Step-by-step explanation:

In manufacturing firms that have characteristics of both job and process environments, they often use an activity-based costing (ABC) approach to determine the cost of each individual production process.

An ABC approach assigns costs to different activities and then allocates those costs to individual products based on the activities they consume. This approach allows firms to accurately track and allocate costs for each specific production process, taking into account the different levels of labor and machinery used.

By using an ABC approach, manufacturing firms can make more informed decisions about their production processes and identify areas where costs can be reduced or efficiencies can be improved.