Which of the following businesses would most likely favor a process costing system?

A process costing system is best suited for businesses that produce large quantities of similar, homogeneous products through a continuous process. This method allows for the accumulation of costs over specific periods and generally involves tracking the costs associated with the production processes rather than individual units of product.

In the case of a laundry detergent manufacturer, production typically occurs in large batches where the same product (laundry detergent) is produced continuously. The costs of materials, labor, and overhead can be averaged out over the total units produced, making it efficient and practical to apply process costing. This aligns well with the business characteristics, as each batch of detergent can be treated as a process, and each unit of detergent produced shares similar costs.

In contrast, a custom furniture manufacturer, car repair shop, and boutique clothing store deal with unique products or services that are tailored to individual customers. These types of businesses would utilize job order costing systems, as they track costs by specific projects or jobs rather than by continuous processes. This fundamental difference in production approach highlights why the process costing system is most appropriate for a laundry detergent manufacturer.