The correct answer is: B. process costing system.
A process costing system is a costing system used to assign costs to large numbers of identical or similar units of production. It is used in industries where the products are mass-produced, such as the chemical, oil, and food processing industries.
In a process costing system, costs are accumulated by process or department, and then assigned to units of production using a cost allocation method such as the weighted average method or the first-in, first-out (FIFO) method.
The main advantage of a process costing system is that it is relatively simple to use and can be applied to a wide variety of products. However, it can be difficult to accurately track the costs of individual units of production, and it can be difficult to identify the causes of variances in costs.
Here is a brief explanation of each option:
- Accounting period costing system: This is a costing system that assigns costs to products or services produced during a specific accounting period. It is used in industries where the products or services are not mass-produced, such as the construction and service industries.
- Job costing system: This is a costing system that assigns costs to individual jobs or batches of products. It is used in industries where the products or services are custom-made or produced in small batches, such as the manufacturing and engineering industries.
- None of the above: This is not a valid option.