Which of the following statements is true of costing systems?
A) A process costing system would be used by manufacturers of custom-made perfumes.
B) A job order costing system would be used by manufacturers of baking utensils.
C) A construction company would likely use a process costing system.
D) An accounting firm would likely use a job order costing system.

Question

Quizplus · Accepted Answer

An accounting firm would likely use a job order costing system as the firm's services are unique to each client and require custom work. Process costing typically applies to companies that produce identical products in large quantities. Job order costing applies to companies that produce unique products or services.

Which of the Following Statements Is True of Costing Systems