Asked by Megan Olsen on May 10, 2024
Verified
Which of the following would most likely use a job order costing system?
A) paper mill
B) swimming pool installer
C) company that manufactures chlorine for swimming pools
D) oil refinery
Job Order Costing System
A cost accounting system used to accumulate costs associated with a specific job or order, facilitating the calculation of the total cost to manufacture a distinct product or provide a specific service.
Swimming Pool Installer
A professional or company specializing in the construction and installation of swimming pools.
- Understand the unique characteristics of job order costing versus process costing and ascertain where each system is optimally employed.
Verified Answer
NY
Natalie YazzieMay 15, 2024
Final Answer :
B
Explanation :
Swimming pool installers use a job order costing system because each installation project is unique and requires different amounts of materials, labor, and overhead costs, making it necessary to track costs on a per-job basis.
Learning Objectives
- Understand the unique characteristics of job order costing versus process costing and ascertain where each system is optimally employed.