Drummond Company provides customized computer training to employees of large corporations.What kind of costing system should Drummond use?
A) Standard costing
B) Process costing
C) Job-order costing
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Drummond provides customized computer training which can be considered as a type of service. Job-order costing system is best suited for service-based industries that provide customized services to clients. This system allows Drummond to track and allocate the costs associated with each training program individually, allowing them to accurately determine the cost of each program and invoice clients accordingly. Additionally, job-order costing system is flexible enough to accommodate changes in the training program and can be adjusted to reflect any changes in materials, labor, or overhead costs. Therefore, Job-order costing is the best choice for Drummond Company.

Drummond Company Provides Customized Computer Training to Employees of Large