Which of the following best explains a job order cost system?
A) It provides product costs for each manufacturing department or process.
B) It is often used by companies that manufacture custom products for customers or batches of similar products.
C) It is often used by companies that manufacture units of a product that are indistinguishable from each other.
D) It is used by companies that manufacture units of a product using a continuous production process.

Question

Quizplus · Accepted Answer

A job order cost system is used by companies that manufacture custom products for customers or batches of similar products. This system accumulates costs incurred for specific jobs or batches of products, allowing for a more accurate calculation of the cost of goods sold and profitability analysis for each job or batch.

Which of the Following Best Explains a Job Order Cost