Asked by Emily Apodaca on Apr 28, 2024
Verified
A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
Job Order Cost System
A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.
Process Cost System
An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.
- Familiarize with the divergences and practical applications of job order cost and process cost accounting frameworks.
Verified Answer
MB
Maurice BruceMay 01, 2024
Final Answer :
True
Explanation :
It is possible for a manufacturer to use both job order cost system and process cost system, depending on the nature and complexity of the products being produced. Job order costing may be used for custom-made or specialty products with unique specifications, while process costing may be appropriate for standardized products that are produced in large quantities.
Learning Objectives
- Familiarize with the divergences and practical applications of job order cost and process cost accounting frameworks.
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