The two most common types of costing systems are:
A)Process cost and transfer cost systems.
B)Job order and process cost systems.
C)Job order and direct cost systems.
D)Process cost and standard cost systems.

Question

Quizplus · Accepted Answer

Job order and process cost systems are the two most common types of costing systems used by businesses. In a job order costing system, costs are assigned to specific jobs or orders, while in a process cost system, the costs are assigned to each production department or process. These two systems provide different approaches to cost accounting and are used in different types of manufacturing and service businesses. Therefore, option B is the correct answer.

The Two Most Common Types of Costing Systems Are