Job-order costing systems are used by many service businesses; process costing systems are not applicable to service businesses.

Question

Quizplus · Accepted Answer

Job-order costing systems can be used by service businesses that provide personalized services, such as law firms, accounting firms, and consulting firms. On the other hand, process costing systems are not applicable to service businesses as they involve the continuous production of uniform units, which is not the case for most services.

Job-Order Costing Systems Are Used by Many Service Businesses; Process