A job order costing system would best fit the needs of a company that makes:
A)Shoes and apparel.
B)Paint.
C)Cement.
D)Custom machinery.
E)Pencils and erasers.

Question

Quizplus · Accepted Answer

A job order costing system works best for companies that produce custom or unique items, such as custom machinery. The system would allow the company to track direct materials, direct labor, and other costs for each custom job, giving them accurate costs for each project. This would be less useful for companies that produce standardized products on a large scale, like shoes and apparel, or products that are made in a continuous production process, like paint or cement.

A Job Order Costing System Would Best Fit the Needs