Which one of the following statements is FALSE?
A)In a job order costing system, individual jobs use different quantities of production resources.
B)In a process-costing system, each unit uses approximately the same amount of resources.
C)An organization that manufactures several types of cereal would use a job order costing system.
D)A corporation whose sole business activity is processing the customer deposits of several banks would use a process-costing system.

Question

Quizplus · Accepted Answer

An organization that manufactures several types of cereal would typically use a process-costing system because each type of cereal would be a separate production process with similar resources used for each unit. Job order costing systems are typically used for custom-made products where each job requires unique production resources.

Which One of the Following Statements Is FALSE