Choose the most likely used costing system for the industries listed below.

-Costing system used by a manufacturer of custom kayaks
A)Process costing
B)Job order costing

Question

Choose the most likely used costing system for the industries listed below.

-Costing system used by a manufacturer of custom kayaks
A)Process costing
B)Job order costing

Quizplus · Accepted Answer

The manufacturer of custom kayaks is most likely to use job order costing because each kayak is unique and requires different specifications and materials, which makes it difficult to use a standard costing system. Job order costing is ideal for companies that produce custom products or services that require special attention to detail and higher levels of customization.

Choose the Most Likely Used Costing System for the Industries