Why would a soda company and a gasoline company primarily use process costing?

The correct choice highlights that a soda company and a gasoline company rely on process costing because the units produced are identical to one another. In process costing, costs are accumulated over a production period rather than by individual units. This method is particularly suitable for industries engaged in continuous production processes, where the output consists of large volumes of homogeneous products.

For both a soda company and a gasoline company, every can of soda or gallon of gasoline produced in a given timeframe is essentially the same as any other produced during that time. This uniformity allows these companies to easily allocate costs (such as materials, labor, and overhead) across all units produced, simplifying the accounting process and providing valuable insights into production efficiency and cost management.

This contrasts with job order costing, which is used by companies producing customized or unique products, where costs can vary significantly from one product to another. By using process costing, the soda and gasoline companies can accurately and efficiently track their production costs while ensuring consistency and quality in their mass-produced products.