Final answer:
The suitable costing method for ABC Company which produces uniform widgets is process costing because the product is identical and made in a continuous process. Job order costing isn't suitable as the widgets aren't customized per batch. Choosing the proper production technology depends on balancing the costs of wages and machines.
Step-by-step explanation:
The question pertains to the appropriate costing method for the ABC Company which produces widgets without any variations in the product. Given the company's operations, where the same process is repeated for producing a homogeneous product, process costing would be the most fitting approach. Process costing is used for products that are indistinguishable from one another and produced in a continuous flow. Job order costing, on the other hand, is used when products are customized or different in each batch, which is not the case here. Therefore, for manufacturing the widgets that are identical, process costing enables ABC Company to accumulate costs and allocate them evenly across units of the same product.
The firm's decision to choose between different production technologies is based on the total costs, which are influenced by the cost of wages and machines. When wages rise, it may be more cost-effective to shift towards using more machines and less labor. For instance, if technology 3 offers the lowest total cost at the highest wage rate, it becomes the preferred technology.