Answer (D) is correct . A job costing system is used when products differ from one customer to the next, that is, when products are heterogeneous. A process costing system is used when similar products are mass produced on a continuous basis. A print shop, for example, would use a job costing system because each job will be unique. Each customer provides the specifications for the product desired. A beverage manufacturer, however, would use a process costing system because homogenous units are produced continuously.
Answer (A) is incorrect because A wallpaper manufacturer would use a process costing system.
Answer (B) is incorrect because A public accounting firm would use a job costing system.
Answer (C) is incorrect because A paint manufacturer would use a process costing system.
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