What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs?
A)contract costing
B)variable costing
C)process costing
D)job-order costing

Question

Quizplus · Accepted Answer

Job-order costing is the most appropriate system for manufacturers of unique special orders or batch processes where each item is different from the others and requires separate costing. This system allows the costs to be accumulated by job or order, providing useful information for pricing, profitability analysis, and cost control. Contract costing is similar to job-order costing but is used for long-term construction contracts, while process costing and variable costing are more suitable for standardized products or mass production.

What System Would a Manufacturer of Unique Special Orders or Batch