The costing system used by a company producing custom window treatments would be:
A)job costing.
B)process costing.
C)equivalent units costing.
D)conversion cost costing.

Question

Quizplus · Accepted Answer

Job costing is a costing system used by companies that produce custom products or services. In this system, costs are assigned to specific jobs or orders. Since the company in question is producing custom window treatments, it is reasonable to assume that each order is unique and requires different resources and labor, making job costing the best choice. Process costing is more suitable for companies that produce standardized products in large quantities, while equivalent units costing and conversion cost costing are specific methods used within process costing.

The Costing System Used by a Company Producing Custom Window