Asked by Ashley Lowell on May 04, 2024
Verified
A company may use either a job order cost system or a process cost system but not both.
Job Order Cost System
An accounting system that accumulates costs for each individual job or project, suitable for businesses producing unique products or services.
Process Cost System
An accounting system used to assign costs to units of production in continuous processes, tracking costs across various departments or stages of production.
- Grasp the core discrepancies between job order cost systems and process cost systems, including when to employ each system effectively.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
False
Explanation :
A company can use both a job order cost system and a process cost system, depending on their production processes. Job order cost system is used for customized and specific orders while process cost system is used for mass production of identical items.
Learning Objectives
- Grasp the core discrepancies between job order cost systems and process cost systems, including when to employ each system effectively.