Asked by Mikayla Pearson on May 12, 2024
Verified
Which of the following is not a reason a service firm would use a job order costing system?
A) to help control costs
B) to determine client billing
C) to determine department costs within the firm
D) to determine profit
Service Firm
A business that provides intangible products or services to its customers, such as consulting, legal advice, or maintenance services, rather than physical goods.
Job Order Costing System
An accounting system that accumulates costs for each specific job or order, used in environments where goods or services are produced upon request.
- Grasp the role of job order costing in managing and controlling organizational costs.
Verified Answer
EP
elizabeth perezMay 14, 2024
Final Answer :
C
Explanation :
Job order costing is typically used in manufacturing firms or firms that provide customized services. The system is used to determine the cost of producing a specific product or providing a specific service. Therefore, determining department costs within a service firm would not be a reason for using a job order costing system.
Learning Objectives
- Grasp the role of job order costing in managing and controlling organizational costs.
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