Final answer:
Yes, Calhoun Productions uses process costing.
This correct answer is 1)
Step-by-step explanation:
Calhoun Productions uses process costing.
Process costing is a costing method used by companies that produce identical or similar products in a continuous flow. It is particularly suited for companies that have a continuous production process, such as manufacturing or assembly lines.
In process costing, costs are accumulated by department or process and then allocated to the units produced. This method is used to determine the average cost per unit and helps in setting selling prices and evaluating performance.
This correct answer is 1)