A hybrid costing system would be most appropriate when:
A) Large quantities of identical products are being produced.
B) A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.
C) There is no standardization of units of production.
D) All the products produced are unique.
E) The volume of production is low and costs are high.

Question

Quizplus · Accepted Answer

A hybrid costing system combines both job order and process costing systems, making it most appropriate when a manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs. The system can track costs of standardized processes used to produce large quantities of identical products while also allowing for the allocation of costs to individual products or orders that require customization.

A Hybrid Costing System Would Be Most Appropriate When