Traditional cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes job-order costing?
A) Job-order costing assigns costs to products or services that meet specific needs of an individual customer.
B) Job-order costing determines the total cost of the production and averages it over the units produced.
C) Job-order costing identifies specific business activity pools or fundamental business. processes and then assigns costs based on the resources consumed by that activity or process.
D) Job-order costing assigns costs based on the machinery they are manufactured on.

Question

Quizplus · Accepted Answer

Job-order costing is used to assign costs to products or services that are typically unique or custom-made, meeting the specific needs of individual customers. This method is in contrast to process costing, which averages costs over all units produced.

Traditional Cost Accounting Assigns Production Costs Differently, Depending on the Product