The two basic types of cost accounting systems are:
A) Job order costing and perpetual costing.
B) Job order costing and customized product costing.
C) Job order costing and customized service costing.
D) Job order costing and process costing.
E) Job order costing and periodic costing.

Question

Quizplus · Accepted Answer

The two basic types of cost accounting systems are job order costing and process costing. Job order costing is used when products are made in individual batches or specific orders, while process costing is used when products are mass-produced and go through a series of continuous steps, making it easier to allocate costs to each unit produced.

The Two Basic Types of Cost Accounting Systems Are