Asked by Katie McFarland on May 17, 2024
Verified
A job order cost system would be appropriate for a crude oil refining business.
Job Order Cost System
An accounting system that accumulates manufacturing costs separately for each job or order to determine job-specific expenses and profitability.
Crude Oil Refining
The industrial process that transforms crude oil into useful petroleum products like gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas.
- Gain an understanding of the contrasts and applications associated with job order cost and process cost accounting systems.
Verified Answer
BN
bhatini noyuloloMay 21, 2024
Final Answer :
False
Explanation :
A job order cost system is used for customized or unique products, whereas crude oil refining involves continuous, identical production, making a process costing system more appropriate.
Learning Objectives
- Gain an understanding of the contrasts and applications associated with job order cost and process cost accounting systems.
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