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

Question

Quizplus · Accepted Answer

A hybrid costing system combines aspects of both job order and process costing. This type of system is most appropriate when a manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs. This is because a hybrid costing system allows for the tracking of costs for both standardized processes and individualized orders, providing more accurate cost information for decision making.

A Hybrid Costing System Would Be Most Appropriate When