Asked by Bradley Bennett on May 04, 2024
Verified
A job order cost system would be appropriate for a crude oil refining business.
Job Order Cost
A cost system that assigns costs directly to a specific job or batch of product, tracking direct labor, direct materials, and overhead.
Crude Oil Refining
The industrial process of transforming crude oil into usable products such as fuel, gasoline, and diesel.
- Distinguish between job order costing and process cost accounting systems.
Verified Answer
JL
JANNO LAMPKINMay 09, 2024
Final Answer :
False
Explanation :
A job order cost system is used for customized or unique products, whereas crude oil refining is a continuous process involving similar products, making a process costing system more appropriate.
Learning Objectives
- Distinguish between job order costing and process cost accounting systems.
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