Which of the following types of companies would most likely use job order costing rather than process costing?
A)Fast food restaurant.
B)Shipbuilder.
C)Crude oil refinery.
D)Candy maker.
E)Cereal manufacturer.

Question

Quizplus · Accepted Answer

Job order costing is more suitable for companies that produce customized products, as opposed to mass-produced. Shipbuilding involves unique and complex products that require specific materials and labor, making job order costing appropriate for this type of company. The other options are more likely to use process costing, which is a better fit for companies that produce large quantities of identical or similar products on a continuous basis.

Which of the Following Types of Companies Would Most Likely