A company may use a job order cost system for some of its products and a process cost system for other products.

Question

Quizplus · Accepted Answer

A company may use different cost systems based on the nature of the products they produce. Job order cost system is used for products that are customized or produced in small batches, while process cost system is used for products that are mass-produced. Therefore, it is possible for a company to use both systems depending on the products they make.

A Company May Use a Job Order Cost System for Some