Asked by Nyiah Smith on May 14, 2024
Verified
A manufacturer of blank CDs would ordinarily use process costing rather than job-order costing.
Process Costing
An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.
Job-Order Costing
A costing system used in situations where many different products, jobs, or services are produced each period.
- Differentiate between process costing and job-order costing based on the types of products manufactured.
Verified Answer
AH
Angelica HernandezMay 15, 2024
Final Answer :
True
Explanation :
Process costing is used when a large number of identical products are produced, with the costs being averaged across each unit. This is commonly used in the manufacturing of blank CDs, where each CD is identical and the manufacturing process is continuous.
Learning Objectives
- Differentiate between process costing and job-order costing based on the types of products manufactured.
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