Questions: Accounting firms, building contractors, and healthcare providers use process costing.

False

Process costing is a method used in accounting to allocate costs to products that are indistinguishable from each other and are produced in a continuous flow. It is typically used in industries where the production process is consistent and the products are homogeneous, such as in the manufacturing of chemicals, food, or textiles.

This option would suggest that accounting firms, building contractors, and healthcare providers use process costing. However, these industries typically do not produce homogeneous products in a continuous flow. Instead, they often deal with unique projects or services that require different costing methods.

This option correctly identifies that process costing is not typically used by accounting firms, building contractors, and healthcare providers. These industries are more likely to use job costing or other methods that better suit their need to track costs for individual projects or services. For example, building contractors often use job costing to allocate costs to specific construction projects, while healthcare providers may use activity-based costing to allocate costs to different services or departments.