Asked by Sarah Elizabeth on Jun 09, 2024
Verified
A job-order costing system would be best suited for production of a large quantity of a homogeneous product.
Job-order Costing
A cost accounting system used to assign manufacturing costs to an individual product or batches of products, typically used in custom or varied production.
Homogeneous Product
A product that is uniform in quality and indistinguishable from other products of the same type.
- Learn to differentiate between process costing and job-order costing systems, and identify the appropriate contexts for their application.
Verified Answer
ZK
Zybrea KnightJun 11, 2024
Final Answer :
False
Explanation :
A job-order costing system is best suited for production of a variety of unique products, rather than a large quantity of a homogeneous product. This is because each product requires its own set of materials, labor and overhead costs, which can be accurately tracked through job-order costing. For a homogeneous product, a process costing system is typically more appropriate.
Learning Objectives
- Learn to differentiate between process costing and job-order costing systems, and identify the appropriate contexts for their application.