A standard cost system may be used in
A)job order costing,but not process costing.
B)process costing,but not job order costing.
C)either job order costing or process costing.
D)neither job order costing nor process costing.

Question

Quizplus · Accepted Answer

A standard cost system can be used in both job order costing and process costing. In job order costing, standard costs can be established for direct materials, direct labor, and manufacturing overhead for each job. In process costing, standard costs can be established for each production department or process. Therefore, the correct choice is (C) either job order costing or process costing.

A Standard Cost System May Be Used in