Asked by anmol setia on Jun 16, 2024
Verified
For which of the following businesses would the job order cost system be appropriate?
A) canned soup processor
B) oil refinery
C) lumber mill
D) hospital
Job Order Cost System
An accounting system that accumulates costs for each individual job or project to determine its total costs.
- Examine the disparities between job order costing and process costing, pinpointing the specific contexts suitable for each.
Verified Answer
JN
Jimmy NguyenJun 20, 2024
Final Answer :
D
Explanation :
A job order cost system is most appropriate for businesses that offer customized products or services, such as a hospital, where services are tailored to individual patients' needs. The other options (A, B, C) are more suited to a process costing system due to their mass production nature.
Learning Objectives
- Examine the disparities between job order costing and process costing, pinpointing the specific contexts suitable for each.