Which of the following production operations would be most likely to employ a job order system of cost accounting?
A)Candy manufacturing
B)Crude oil refining
C)Creating custom-made suits
D)Flour milling

Question

Quizplus · Accepted Answer

Creating custom-made suits involves producing unique products according to customer specifications, often using specialized materials and production processes. Job order costing is best used to determine the costs associated with producing individual orders, making it the most likely cost accounting system to be used in this type of production. The other industries listed would more likely use process costing, which is used to determine the cost of producing large quantities of identical products.

Which of the Following Production Operations Would Be Most Likely