Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 32

For the following questions, circle the best response.

A job order costing system would probably be appropriate for a firm that produces

a. automobiles.

b. stained glass windows.

c. videocassettes.

d. microcomputers.

e. none of the above.

Step 1 of 6

Job order costing system

Job order costing system is a system that allocates manufacturing costs to a single or batches of products. It is also known as Job Costing. It is widely used by companies that produce a large number of different products. This system uses job cost sheets, labor cost documents, overhead cost documents or material cost flow documents.