A hybrid costing system would be most appropriate when:
A) A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs.
B) Large quantities of identical products are being produced.
C) The volume of production is low and costs are high.
D) There is no standardization of units of production.
E) The volume of production is low and standardized products are produced.

Question

Quizplus · Accepted Answer

A hybrid costing system combines elements of both job costing and process costing. Job costing is appropriate when there is no standardization of units of production and each unit is unique, while process costing is appropriate when large quantities of identical products are being produced. A hybrid costing system would be most appropriate when a manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs, as this situation involves both standardized processes and unique customer requirements.

A Hybrid Costing System Would Be Most Appropriate When