Job costing ________.
A) cannot be used by the service industry
B) records the flow of costs for each product or service
C) allocates an equal amount of cost to each unit made during a time period
D) is used when each unit of output is identical

Question

Quizplus · Accepted Answer

Job costing is a method of recording the flow of costs for each product or service. It is commonly used in manufacturing, construction, and other industries where products or services are customized for each client or project, and where the costs associated with each job need to be tracked separately. Option A is incorrect as the service industry also uses job costing. Option C is incorrect as job costing allocates costs specifically to each job or project, not equally across all units produced. Option D is incorrect as job costing is specifically used when each unit of output is unique or customized.

Job Costing ________