The correct answer is process costing.
Process costing is a type of costing system that is used in industries that produce large quantities of homogeneous products. In process costing, costs are accumulated by process or department, and then assigned to units of product using a predetermined cost per unit.
Refineries are a good example of an industry that uses process costing. Refineries produce large quantities of homogeneous products, such as gasoline, diesel fuel, and jet fuel. The costs of producing these products are accumulated by process, such as the distillation process or the cracking process. These costs are then assigned to units of product using a predetermined cost per unit.
The other options are not correct because they are not types of costing systems that are used in refineries.
- Batch costing is a type of costing system that is used in industries that produce batches of products. In batch costing, costs are accumulated by batch, and then assigned to units of product using a predetermined cost per unit. Refineries do not produce batches of products, so batch costing is not a good fit for this industry.
- Multiple costing is a type of costing system that is used in industries that produce a variety of products. In multiple costing, costs are accumulated by product line, and then assigned to units of product using a predetermined cost per unit. Refineries do produce a variety of products, but they are all homogeneous, so multiple costing is not a good fit for this industry.
- Job costing is a type of costing system that is used in industries that produce custom products. In job costing, costs are accumulated by job, and then assigned to units of product using actual costs. Refineries do not produce custom products, so job costing is not a good fit for this industry.