Manufacturing entities which produce products that consume resources differently and whose costing system needs to separate costs by individual jobs use:
A)process costing
B)period costing
C)job costing
D)peak load costing

Question

Quizplus · Accepted Answer

Job costing is used when the manufacturing entities produce products that consume resources differently and whose costing system needs to separate costs by individual jobs. In job costing, costs are assigned to each job or batch of products produced, enabling the company to determine the cost of each product or job. Process costing, on the other hand, is used when the production process involves a continuous flow of identical units, and costs are averaged over all units produced. Period costing involves the accumulation of costs for a specific period of time, regardless of the number of units produced. Finally, peak load costing is a method of pricing electric power that involves charging higher rates during periods of peak demand.

Manufacturing Entities Which Produce Products That Consume Resources Differently and Whose