A company that produces a large number of standardized units would normally use a job order costing system.

Question

Quizplus · Accepted Answer

A company that produces a large number of standardized units would normally use a process costing system instead of a job order costing system. Process costing is used when a large volume of identical products is produced through a continuous process where it is impossible or impractical to separate costs for each individual product. Job order costing, on the other hand, is used when products are produced in small batches or on a custom basis, and costs can be attributed to each individual job or order.

A Company That Produces a Large Number of Standardized Units