Asked by Sarah Elizabeth on Jun 09, 2024

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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.
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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.